Here are a couple more ideas for watching GE (and other securities) in conjunction with the NYAD (NYSE advance/decline line).
Orange lines are slope of GE and NYAD for 30 minutes.
Blue lines are 60 minute extensions of the orange, unless a reversal.
Pink lines are mirror of NYAD slope onto GE price range.
White circles indicate reversals in GE upward slope, accompanied by parabolic sell signals (per yesterday's post).
The low risk trade develops when the 30 minute slope of the NYAD and its projection diverge from the 30 minute GE slope at 10:45. Interestingly, the GE slope continues to diverge for 30 minutes, which is somewhat longer than we are use to seeing over the past 2 weeks, and then reverses to the downside at 11:15, accompanied by a parabolic sell signal and a 816 sell signal 6 minutes later. With these 3 indicators now in sync, the scene is set for a clear GE downtrend.
Looking carefully at the chart you might wonder why the GE reversal at 10:15 doesn't merit the same level of confidence as the 11:15 trade.
The reason is simple . . . the NYAD is still in an upslope at 10:15. While a more risk tolerant trader might have taken the 10:15 GE sell trade as signaled by the parabolics and confirmed by the 816 cross 8 minutes later for a net gain of .17 - .20, I prefer to wait for all 3 signals to be in sync. The result is fewer trades, but also fewer whipsaws and less anxiety. That's my comfort level.