Preface

The transparency of the American markets offers an array of indicators and allows deep insights of prevailing sentiment. You find the activities of NYSE members like specialists and floor traders, public and odd lot short sales, the Short Interest Ratio as well as the large block transactions of the institutional investors published every week. Other tools for technical analysis include trend indicators, daily advances and declines, daily new highs and lows, volume, indices, put/call ratios and other useful information like Stochastics, RSI, MACD, TICK and more. The problem is only that all these indicators contradict each other most of the time. Countless books have been written on this subject, and no matter how many will be written in the future: always be aware that there is no such thing as the Holy Grail of the stock market. But some people are more successful than others and the answer is quite simple:

No indicator is right all the time and you don't have to be right all the time. Just be right a higher percentage of the time than wrong. Choose some reliable indicators and stick
to them. Don't follow some indicators for a while and switch to some others if they fail. Don't be a technician in the first half of the year and a fundamentalist the next half. Be consistent and disciplined in your approach. Don't abandon a good indicator because you think this time everything is different.

It takes of course a lot of guts because the opinions of the most widely quoted gurus of Wall Street are usually contrary to your indicators at that time. This is much easier if you don't use margin. You will sleep a lot better if you buy fifty shares of IBM with the money you can spare than two hundred shares on credit.

Table of Content

• Advance-Decline Indicators
• Advance-Decline Line
• Advance-Decline Ratio
• Upside-Downside Volume Ratio
• Upside-Downside Volume Line
• Upside-Downside Volume Net Difference
• Advance-Decline Net Difference
• Global Futures Advance-Decline Index
• Global Futures Upside-Downside Volume Index
• Market Indicators
• High-Low Differential Index
• High-Low Ratio
• Global Futures High-Low Index
• Global Futures Bottom Indicator
• Cycles
• Large Block Index
• Short Term Trading Index (ARMS Index or TRIN)
• Trend Indicator
• CBOE Volatility Index (VIX)
• Index Options Put/Call Ratio
• Call/Put Ratio
• Global Futures Put/Volume Ratio
• Smart Money Flow Index
• Global Futures Timing Indicator
• Global Futures Market Timer Index
• Global Futures Fear Indicator
• Wall Street Courier Index
• Global Futures Trading Index
• Global Futures Speculation Index
• Program Trading
• Calendar Spread
• Odd-Lot Differential Index
• Short Sales Statistics
• The NYSE Short Interest Ratio
• Odd-Lot Short Sales Ratio
• Floor Traders Short Sales Ratio
• Specialist Short Sales Ratio
• NYSE Member Short Sales Ratio
• Public Short Sales Ratio
• Odd-Lot Balance Index
• Odd-Lot/Floor Trader Short Sales Ratio
• Global Futures Odd-Lot/Specialist Short Sales Ratio
• Global Futures Public/Member Short Sales Ratio
• Public/Specialists Short Sales Ratio
• High readings indicate heavy shorting by the public (the so called crowd) and therefore
• bottoms, low readings indicate tops
• Global Futures NYSE Member Trading Indicator
• Sentiment Indicators
• Investor Sentiment
• Commitments of Traders Report
• Appendix
• Dow Jones Industrial
• S&P 500
• Risk Statement