Registered User Joined: 2/28/2005 Posts: 36
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I notice that the RUT-X has been the leading index (after the NDX-X) lately. I ran an AD Line on its components and see this line greatly lags price on the daily chart. To gain more perspective I changed the time frame to a weekly chart and was suprised to see on this scale the AD line greatly leads price.
I would not have assumed the disparity would have been so great between the daily and weekly AD line, with one showing a clear lagging condition and the other showing a clear leading condition. Based on this observation I must assume there is a "ideal" time frame from which to draw a correlation between the AD Line of components of an index and the price of the index, based on the underlying math used to create the AD line. Any thoughts?
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