08 January 2011

Advance - Decline : Post 2

In a follow up to the last "attempt" to get a leading indicator to Nifty's movement [ here ] I am attaching another chart which shows that Advance - Decline can be used to predict weakness and strength. Check the chart below.

We clearly see Adv-Dec 5day moving average showing negative divergence to Nifty's movement. So as the nifty crawled from 6000 to 6180, more stocks were declining than advancing. Result is you know what happened on Friday!


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