Toraku Index

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DEFINITION of 'Toraku Index'

A technical indicator that compares the number of advancing stocks on the Tokyo Stock Exchange to the number that are declining. The result is used by technical traders to determine the likelihood of a market correction.

INVESTOPEDIA EXPLAINS 'Toraku Index'

This indicator would be classified as a market breadth indicator because it only incorporates the number of advancing and declining issues to determine the broad support of any given move. Other types of breadth indicators include the advance-decline index, cumulative volume index, McClellan oscillator and Haurlan index.

RELATED TERMS
  1. Tokyo Stock Exchange - TSE

    The largest stock exchange in Japan, headquartered in its capital ...
  2. Breadth Indicator

    A mathematical formula that uses advancing and declining issues ...
  3. Cumulative Volume Index - CVI

    A momentum indicator that gauges the movement of funds into and ...
  4. Correction

    A reverse movement, usually negative, of at least 10% in a stock, ...
  5. Advance/Decline Line - A/D

    A technical indicator that plots changes in the value of the ...
  6. Haurlan Index

    A technical analysis indicator, developed by P.N. Haurlan, that ...
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