In This Chapter
Keeping your eye on volume patterns and the advance/decline line
Putting the price and volume indicator together in one
Taking a consensus of sectors and industries
Getting sentimental about the market
Influencing the future
In Chapter 6, you explore indicators that measure the trend on any one given market (stock, commodity, or currency). In this chapter, you look at broad market indicators, which measure the energy of a large group of stocks combined into an index. (An index is calculated from the prices of a select group of stocks, such as those in the S&P 500, the NASDAQ, or the DOW.)
Just as you apply indicators to individual markets, you can also apply indicators to indexes and then compare the market you’re trading to the broader market it’s a part of.