I follow NYSE values to determine market strength and use it as an indicator to base my trades off of along with NYSE TICK, Volume, and price action.
NYSE A/D Values Observations-
Very Bullish: 3.0-4.5
Bullish: 1.5-3.0
Neutral: 0.6-1.5
Bearish: 0.2-0.6
When NYSE A/D opens on a large bar up between 0.6-3.0 look for a large and quick reversal bar within the first 5 minutes of market open for a potential short trade setup that may last for 45-60min (Time period of expected reversal 7:15-7:30am)
When NYSE A/D opens with and extreme value 3+ or less then 0.5 there is a bias to go in the direction of the extreme NYSE A/D value; moreover, if there is a gap in the morning, and the gap is not filled in the first 30min, look to trade in the direction of the NYSE A/D extreme value.(ie. If NYSE A/D is 3+ after 10min of market open on a gap up with no gap fill, go long and expect bullish trend day, the reverse is true for NYSE opening below 0.5 and not filling the gap in first 30min)
Other things I will look at in conjunction with NYSE A/D is relative sector strength in XLF, XLE, and SMH, as well as the volume seen in these ETF's and the Futures contracts ES, ER2, NQ, YM, ZN, 6E, and 6J.
Opening Short setup, NYSE A/D neutral value range-
Opening Gap and run, NYSE A/D Very Bullish Value-
Opening NYSE A/D extreme value gap fade, but still bullish bias from NYSE A/D Bullish value-
Opening NYSE A/D bullish value-
Opening NYSE A/D short setup, NYSE A/D bearish opening value-
Opening NYSE A/D short setup, NYSE A/D bearish opening value-
Opening NYSE A/D long setup, NYSE A/D very bullish opening value-
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