Advancing Issues over Declining Issues all divided by Advancing Volume over Declining Volume. That's the formula. What does it mean? Meh.
It's an index that is in theory a representative equation for how strong or weak the market is. The notion runs that when there is heavy volume, 'smart' buyers are putting lots of money into the system. So if you see a big up day with tons of volume, it signals, in theory, that "new money" is entering the market...i.e. cash that was sitting in money market accounts and mattresses by people who perceived more risk than reward in the marketplace have found a shift and decided to get invested.
Does it work? Is it real? Eih. Sorta. Sometimes. Kinda.
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Finance: What is the Fast Market Rule?11 Views
Finance a la shmoop what is the fast market rule? okay things get crazy here [Two guys riding a rollercoaster]
whoa and every now and then there's a leap well blimey, that's how things work
here on the London Stock Exchange.....
the fast market rule accommodates the chaos by giving brokers and other market
makers the freedom to trade outside the ranges published to the exchange why is
this needed? well because we live in a world of robots and artificial
intelligence and fat thumbs that hit the wrong keys and hackers from Russia China
and Mars all of whom can profit from chaotic disruption if you want to see
this phenomenon in its finest form well check out Jack Nicholson in the original [Man stood next to Jack Nicholson as Joker]
Batman movie and that was the best one so the logic revolves around the fact
that today even with all our massive computing power we would still rather
rely on human beings when you know the congressman hits the fan then assume
that a computer will be clever enough to figure out what's wrong quickly you know
when the world is on a collision course with chaos all over the place fast [Meteor strikes Earth]
market rule, humans over robots...
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