The Mad Scientist

Mad Scientists

As a trader, I utilize a lot of the same tools & indicators used by others. I do at times, however, venture out into experimenting with lesser known indicators looking for a deeper understanding of price movements.  Another motivator is to look for early signs of change in price direction in order to catch the bulk of the next move – up or down.

This week I have been using the Accumulation Distribution indicator on the 5 minute chart of ROST (Ross Stores). Here is what it shows:

Note the bottoming of the indicator (under -0.14) corresponds to a surge in volume. The circled area represents an ideal long entry occurring yesterday.

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