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 of Indicators
by PRASHANT SHAH -
Breadth Indicators We just discussed a breadth indicator based on a 200-day moving average. The moving average look-back period can be changed based on the trading time horizon. There are also many other tools to plot breadth charts. As mentioned earlier, any indicator may be used as the breadth indicator. Advance-decline is a very popular ... Read more
High–Low Momentum Index
by PRASHANT SHAH -
Breadth indicators based on price high or low and moving average are more useful breadth indicators as per my experience. Here are a few aspects to consider while studying the breadth readings of major indices, groups, or sectors. Stocks trading above or below the average line.Stocks trading above important high or low, such as 52- ... Read more
Open Interest-based Breadth
by PRASHANT SHAH -
Open interest breadth is another useful indicator for short-term derivative trading. As the name suggests, open interest shows how many parties have interest open in the instrument. The interest here means their trade is still open. Derivatives are contracts. A contract is opened when there is a buyer and a seller. The bid price on ... Read more
