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Market Breadth

Overview

  • Find potential highs or lows in the general market
  • Divergence is a key way to spot market turns early and act as an early warning sign

 

 

AD line

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  • A line that is calculated by taking the difference between the number of advancing
  • Can be used as a point of divergence, AD line may not have made a new high but price may have, signalling potential weakness
  • Can be used like regular bearish / bullish divergence

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