Breadth Thrust Indicator

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Dictionary Says

Definition of 'Breadth Thrust Indicator'

A technical indicator used to ascertain market momentum. The breadth thrust indicator is computed by calculating the number of advancing issues on an exchange such as the NYSE divided by the total number of issues (advancing + declining) on it, and generating a 10-day moving average of this percentage. The indicator signals the start of a potential new bull market when it moves from a level of below 40% (indicating an oversold market) to above 61.5% within any 10-day period, a sentiment shift that occurs only rarely.
Investopedia Says

Investopedia explains 'Breadth Thrust Indicator'

The breadth thrust indicator was developed by investor and analyst Martin Zweig. Since it provides a timing signal with a gap of many years or even decades, its utility lies more in signaling long-term trends than as a short-term trading indicator.
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'Breadth Thrust Indicator'

  • Market Breadth: Advance/Decline Indicators | Investopedia

    http://www.investopedia.com/university/marketbreadth/marketbreadth3.asp
    ... The breadth thrust indicator, therefore, creates a percentage value that moves just
    like a traditional oscillator from 1 to 100 (or .01 to 1.00). ...

  • How To Build A Trading Indicator

    http://www.investopedia.com/articles/trading/04/120804.asp
    ... basics, check out Support & Resistance Basics.) For example, when using the breadth
    thrust indicator (which is represented by a line indicating momentum levels ...

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