Friday, November 06, 2009

NYAD Proxy Gadget

I've added another new gadget to the right side of the blog. This time it's a real time proxy for the NYAD, the NYSE advance decline line that I use to confirm 100% of my trades.
I've mentioned before that I could probably daytrade quite successfully using just the NYAD and the pivots but I like the conformations offered by the MAs and the parabolics to take the edge off.
Just as a real time feed for the VIX is unavailable in FreeStockCharts, it's the same story for the NYAD. I've managed to solve the VIX problem recently by using the VXX, but the NYAD proxy required quite a bit more work. I've placed it between the Qs and GE VIXEN feeds on the blog so you can watch the NYAD dynamics on all 3 charts simultaneously.
The violet line is a composite of 6 different indicators and I regard the coding as proprietary, just because its development required so much time.
I've added a little momentum shadow behind the violet line to show relative strength and topped off the indicator with 7 (yellow) and 14 (blue) period linear regression lines that clearly indicate the direction of the short term trend.
Many thanks to Worden Brothers for making this product available. 3 years ago this level of technical refinement, user programming options and a real time feed would have cost you at least $60 per month.
Also thanks to readers for feedback on the GE VIXEN Trader, which seems to have generated a fan club of it's own.
I failed to mention a reliable entry/exit setup in the initial post so I'll quickly describe it here as shown by the green and red vertical arrows below.
Although I use the GE/VXX cross as an initial entry I'll add to the position when green arrow conditions present. On the other hand, when in the position, I'll exit when red arrow conditions present.
The red, green and yellow lines in the lower technical panel represent a 3 (green) and 7 (red) Moving average, while the yellow line is a FSC smoothed detrended price oscillator (DPO) that has been individually "tuned" for the Qs and GE charts shown here.
As with the NYAD gadget, I've also added a LR7 (white line) to the yellow line DPO to clearly display short term momentum.

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