20DMF

[Pascal]

Market has been bullish all day long today.
Nothing indicates that anyone fears that a pull-back if possible.

Anyway, it is best not to bet against such a money flow.


Pascal

[Wei]

Pascal,

Cumulative Ticks goes down when 20DMF moves up. Do you know why we get such divergence?

Thanks,
Wei

[Pascal]

Pascal,

Cumulative Ticks goes down when 20DMF moves up. Do you know why we get such divergence?

Thanks,
Wei

It is not always the case. The often move in the same direction.
Why is anybody's interpretation.

The only thing that I can tell is that the Cumulative Tick measures the number of price upticks minus the price downticks for all the NYSE traded stocks. It is therefore a very wide measure of accumulation/distribution that tracks mainly small stocks (because there are more small than large stocks).

The 20DMF tracks the LEV pattern of large stocks and hence tracks the accumulation/distribution of large players.

In other words, the cumulative tick might be closely linked to IWM moves why the 20DMF is linked to SPY moves.


Pascal

[Wei]

Pascal,

Thanks for your explanation.

Wei.

It is not always the case. The often move in the same direction.
Why is anybody's interpretation.

The only thing that I can tell is that the Cumulative Tick measures the number of price upticks minus the price downticks for all the NYSE traded stocks. It is therefore a very wide measure of accumulation/distribution that tracks mainly small stocks (because there are more small than large stocks).

The 20DMF tracks the LEV pattern of large stocks and hence tracks the accumulation/distribution of large players.

In other words, the cumulative tick might be closely linked to IWM moves why the 20DMF is linked to SPY moves.


Pascal