Accumulation Lines and Trendlines

Any trader worth his/her salt is always on the lookout for a better indicator, a better system, a better way to trade.  The Prudent Trader is also always on the lookout.

Recently while reading an article, about using trend lines on a volume or accumulation algorithm with some success it occurred to me to try the same with the Prudent Trader Accumulation/Distribution algorithm. When looking for new ideas, new methods I always start with a visual inspection for a cursory look at the method.

I and members alike have used this algorithm for years in a divergent analysis, this brings forth a new dimension.  A chart of SPY (click to enlarge):

The visual inspection appears to me very intriguing.  A good deal more work needs to be accomplished before accepting a tehnique such as this but we have to begin somewhere.

You do not need a Phd in finance, nor do you need to be a financial journalist or analyst to have some good independent thought. You all have it in you, Wall Street just doesn’t want you to know you can think for yourself.