As we 've seen in this chapter, breadth analysis using the McClellan Summation Index, volume analysis using Ord-Volume and price and volume relationships, and momentum analysis with PMO and MACD indicators
Ord-Volume Chart for SPY Focusing on the September 2005 High
Ord-Volume Chart for SPY Focusing on the September 2005 High all complement each other to help find the trends of the market. By finding the trend of the market first and then trading stocks in the direction of that trend, a trader is more likely to realize more winning trades. In effect, what a trader is attempting to do is trade from the long side when the advancing issues are increases and the declining issues are decreasing, and when volume is increasing on advancing issues and pushing them higher. This is the formula for success in the market.
In the next chapter we will focus on sector analysis to find the best stocks in strong sectors. We will also look at some indicators that I have found along the way that can confirm trends and reversals. And always remember, "Keep the wind at your back."
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