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My basic framework:
PRICE ↑
BREADTH ↑
TICK strong
NYSI ↑
= trend has strong internal confirmation.
PRICE ↑
BREADTH ↓
TICK weakening
NYSI rolling over
= rally deserves more skepticism.
PRICE ↓
BREADTH improving
TICK divergence
NYSI turning
= start looking for a potential change in trend.
The biggest lesson:
Most traders spend 95% of their time staring at:
SPX
QQQ
NVDA
AAPL
Candlesticks
Moving averages
Meanwhile, some of the most useful information is happening UNDERNEATH those charts.
Don't just ask where the market is going.
Ask:
How many stocks are going there with it?
That's market breadth.
🔁 Repost if you want more threads breaking down the indicators I focus on most and why professional traders read the market beneath the surface.
@NextPinApp Thank you! Please also add the option to change font color... :). I personally prefer to see white or light colors, other colors don't stand out as well against black. 😀