RE: Trendline Breakouts in the Percentage of Stocks Above Their Key MAs
(2020-07-27, 11:42 AM)isatrader Wrote:(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.
Cool tx.
The 150d sector breadth is your own data source? cannot see those tickers on Stockcharts.com