Breadth Zone
by PRASHANT SHAH -
Breadth Zone We discussed how we can plot different breadth indicators. We calculate the percentage of stocks qualifying for a bullish criterion. We can do something similar with bearish criteria, high volatility, high momentum etc. With this calculation, any breadth indicator that we plot will be oscillating between 0 and 100. We have different zones ... Read more
Bullish-Percent
by PRASHANT SHAH -
Noiseless chart indicators I prefer to track breadth indicators based on noiseless charts because it considers both price and volatility. Thomas Dorsey in his book mentioned that Earnest Staby was trying to create an indicator that is bearish when the market is at the top and bullish when the market is at the bottom. He ... Read more
All Sector Breadth
by PRASHANT SHAH -
All sector breadth You must have by now understood the concept of breadth. You can plot breadth on NSE All Sectors group to study the trend and the health of the market. Create a group of all sectors and plot its breadth chart. Think about this for a moment, what will that chart capture? For ... Read more
Breadth Indicators
by PRASHANT SHAH -
Let’s discuss Breadth indicators in detail. Calculation Let us consider a simple example of using the 200-day moving average to calculate the breadth indicator for the Nifty 50 index. For example, 50 stocks constitute the Nifty 50 index. The next step is to calculate how many stocks are bullish from the group. The criteria to ... Read more
Anchor-based breadth
by PRASHANT SHAH -
I am introducing a couple more breadth indicators based on P&F charts. Recall the earlier discussion on the Anchor column. The Anchor column in a P&F chart captures the trend and momentum. A large column of X shows strong bullish momentum, and a large column of ‘O’ shows strong bearish momentum. We can calculate how ... Read more
BRS Principle
by PRASHANT SHAH -
BRS Principle How does one identify if a sector is gaining momentum and doing good? A classic signal in this context would be a turnaround in the breadth of the sector. If the breadth turns bullish and sustains in the bullish zone, it would be a strong signal that the majority of the stocks are ... Read more
