# Advances and Declines

The idea for these strategies comes from chapter 5 (Market Breadth) of [*How Markets Really Work*](https://moshferatu.dev/moshferatu/how-markets-really-work) (2012) by Larry Connors.

As with most of the strategies from this book, they are meant to illustrate certain characteristics of the market rather than be traded directly.

## Rules

### Advances

1. The asset (e.g., SPY) must be above its 200-day moving average.
2. If the ratio of **advances to declines** is at least 2 : 1, enter a long trade.
3. Exit the trade after 5 trading days (~1 week).

### Declines

1. The asset (e.g., SPY) must be above its 200-day moving average.
2. If the ratio of **declines to advances** is at least 2 : 1, enter a long trade.
3. Exit the trade after 5 trading days (~1 week).

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