How to day trade currencies

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http://www.marketgeeks.com -Many methods exist to day trade and swing trade currencies. Learn the best way to analyze and trade currencies for short term and day trading styles. Learn to monitor your risk and return and volatility as well.

Business Economy & Finance

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Divergence – Advance Decline Line
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Free Trading Report
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Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Advance Decline Line
Internal Market Indicator
Sometimes Called Breadth Indicator
“Measures Cumulative Sum Of The Difference Between
Advancing Stocks And Declining Stocks That Make Up
NYSE”
Moves Up When Index Has More Advancing Stocks
Moves Down When Index Has More Declining Stocks

Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Why Is ADL Important?
NYSE, NASDAQ and S&P 500 Are Capitalized Weighted
– Allocates More Weight To Large Cap Stocks
ADL Is Cumulatively Weighted
– All Stocks Weighted Equally
What Does This Mean?
Market Indexes Move Based On A Handful Of Large
Stocks While The ADL Moves Based On All The Stocks
That Make Up The NYSE

Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Divergence Analysis
Traders Should Look For Short Term
Divergence Between ADL And NYSE
NYSE Going Up – ADL Going Down
Stock Market Overbought
NYSE Going Down – ADL Going Up
Stock Market Oversold

Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
NYSE Swings Higher

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Advance Decline Line Swings Lower

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Stock Market Sells Off After Divergence

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NYSE Moving Higher

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Advance Decline Line Moving Lower

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NYSE Sells Off Next Few Days

Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Things To Remember
Use NYSE Index
NYSE Advance Decline Line
Large Caps Drive Index
All NYSE Stocks Drive ADL
Index Leads But ADL Controls

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