[pcabc]

[quote pid='15463' dateline='1584483164']


1987:

Again I picked up black and maroon danger warnings about 3-4 weeks before the precipitous drop, 1.  Again Weinstein momentum and the % stocks above their 200 day EMA diverged, 2 & 3.  There was a divergance in the A/D line too, but the time period was too long for my code to pick it up.    

I am trying to work up code that picks up the breadth decline signs for both these drops.  Whilst I could produce code that might pick up each separately and then AND the results together that would be fine tuning for specific circumstances and miss the next one.  The other challenge is not to pick up too many false alarms, as false alarms devalue the system leading to it being ignored.
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Longer term chart for 1987:
   
This 2 year chart shows the divergence between advance and decline and price via points 1, 2, 3 and 4.  The bars below the A/D line show my indicator picking up the divergence.  However, even by stretching the signal it finishes just as the danger signs are indicated at 5.

If we look after points 2 and 4 the two lines, price and A/D follow each other approximately.  But the time scale is about the same as the recent divergence.  So it is hard to make something detect one without ignoring the other.