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Steve Lentz and Jim Graham
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Options Strategy Lab: Spreading trading with the advance-decline line
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FOT-November 2008-3
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Detailed Description
This system trades credit spreads based on signals generated by the advance-decline (A-D) line, which is a day-to-day running total of the number of stocks that have closed higher on the day (advancing) minus the number of stocks that have closed lower on the day (declining). The indicator is applied to the S&P 500 index, but it can be calculated on any market index for which daily advancing and declining issues are reported.
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