RE: Trendline Breakouts in the Percentage of Stocks Above Their Key MAs
(2020-07-27, 10:18 AM)Twenty Bagger Wrote: isatrader, great analysis like always.
A question on the breadth measures. For the Combined version (% above 50/150/200d MAs) have you backtested these to find the best combination? Perhaps tried with different weighting for long term (% of stocks above 200d) vs short term (% above 50d MA). Perhaps adding in Small and Midcap breadth measure could be useful as they are usually the segment that moves first in a market correction. Or add % of stocks above 20d EMA? Just some thoughts. Keep up the amazing work tx
No, was just an experiment to start out with, as I always look the 6 MA breadth charts of the NYSE & Nasdaq at the same time. So i thought it would be interesting to combine the data into one chart. And as you've seen it's makes a very useful breadth chart imo.
As far as backtesting. No, but from the 20 year chart I can see that my normal ranges that I use on the 150 day MA sector breadth work just the same. i.e. Above 60% - Stage 2, Below 40% - Stage 4, and 40% to 60% range is Stages 1 or 3
Feel free to experiment with different combinations. As adding the 20 day MA breadth might affect a little. But I'm pretty happy with how it works with the current combination.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.