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Technical Analysis: Power Tools for Active Investors by Gerald Appel

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Converting the Daily Breadth Thrust Model into an Intermediate Entry

I promised at the end of Chapter 6 to show you how to employ the MACD to convert the shorter-term daily-based Breadth Thrust timing model into a more intermediate version that is capable of remaining in the stock market for longer periods of time. Incidentally, you can employ this method to extend the lives of other shorter-term timing models that you use. There is a very good chance that you will find yourself extending profit while reducing trades with their attendant whipsaws and transaction costs.

The rule changes are actually rather straightforward. Here are the rules for the intermediate version of Breadth Thrust.

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