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
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
