welcome to this video on the latest date trading tipd that I'm gonna share with
you today so today's day trading tips is for beginners it helps with your
psychology it's for really intraday trading indexes is where it works the
best so as you can see here I've got the e-mini S&P e-mini is on the bottom I've
got a 2 minute chart you can vary this depending what you want but I do use
this for intraday trading now here's the key over here I have the advanced
decline line and I use the same time interval so the advanced decline line is
a breath indicator and it's basically a Index it's calculated by the number of
advancing stocks last the number of declining stocks and that's pretty much
it okay so what how are we gonna use this
so we're gonna use it to get a little bit of an edge once in a while so I will
tell you right away this is not something that's going to help you on
every single trade but it is something that can give you a heads up
sometimes before the market or trading does and that's what we're looking for
so I'm kind of an edge right okay so the first one is that we kept up this day
and notice that on the SPE minutes we get a higher high here but on the
advanced decline we get a lower high so that is a heads up that's a little bit
of a leading indication now remember this is not really an indicator
technically because it's not taking the data of the SPE Mini's and running it
through some sort of mathematical calculation it's really just measuring
the statistics so that's the difference between an indicator and a status and
statistics it's an index in and of itself so the advanced vs. at decline
issues meaning stocks not following through here and so that would be a
little heads-up that oh wait a minute okay about 50 minutes into the trading
day we've gapped up and maybe this puppy is not maybe that's it maybe that
the end of the story because we see the breath indication here not following
through to the upside alright so there would be one all right now a lot of
times it's gonna follow pretty similarly but then other times we're going to find
other times when they are not following through so here for example we see these
highs coming up here in here match these highs we got them there okay so for the
e-mini is for the SP this is the market we're trading by the way so we're not
treating this market we're treating this one and we see that we basically have
equal high equal high equal high equal high but not so on the advanced decline
line so here I by the way this is important point to I make it into
candlesticks you can actually turn it into a line if you want to technically
it's usually called the advanced decline line and they draw it as a well a line
so there's a little different thing that I like to do I like to actually have it
plotted as candlesticks so then I'm I'm seeing apples to apples but however you
want to plot it that's up to you so we see okay first of all hitting high
hitting high but then even though the S&P emini is still hitting equal highs
here no on the breath indicator mm-hmm we're
not making it up there anymore and so that again is showing an early
indication that oh maybe this strength that's showing on the market to the
upside may not be sustainable might not be sustainable because underlying that
the when you measure all of the individual stocks those that are
reclining and those are advancing looking at the difference between those
they're not holding up they're not holding up at the same level and so nice
low tip there for ya it's something that I use I look at when I day trade the
equity indexes so if you're trading Forex or for training individual stocks
this is not going to be as helpful I'd only
I think there is anything like this for Forex or at least not equivalent to it
and so this isn't really for Forex this is for equity trades and again
individual stocks is not going to work as well with it's great if you're
treating the ESPYs you're treating the Nasdaq they're
treating the russell big indexes like this because that's really what you're
looking at is the conglomeration of all these different individual stocks put
together and plotted is as when index alright so nice tip for you there by the
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you