Toraku Index

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.

BREAKING DOWN '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. Breadth of Market Theory

    A technical analysis theory that predicts the strength of the ...
  2. Advance/Decline Index

    A technical analysis tool that represents the total difference ...
  3. Breadth Thrust Indicator

    A technical indicator used to ascertain market momentum. The ...
  4. McClellan Summation Index

    The McClellan Summation Index is a long-term version of the McClellan ...
  5. Advances And Declines

    The number of stocks that closed at a higher price than the previous ...
  6. Diffusion Index

    1. A measure of the percentage of stocks that have advanced in ...
Related Articles
  1. Stock Analysis

    Advance-Decline Line: Simple Breadth Indicator Can Be Used to Spot Trend Reversals

    Market breadth indicators are based on the number of stocks going up or down and the Advance-Decline (A-D) Line is the simplest way to measure breadth. Every day, the number of stocks that closed ...
  2. Active Trading Fundamentals

    Market Breadth: Advance/Decline Indicators

    Thirty stocks make up the Dow Jones Industrial Average. If the Dow moves up 20 points, there's no way to tell from that number if the increase is the result of only one stock going way up or ...
  3. Technical Indicators

    Use The McClellan Oscillator To Measure Market "Breadth"

    How broad is the market? And, once we answer that question, how can we use that answer to our advantage?
  4. Active Trading

    Accumulative Swing Index And The McClellan Oscillator

    These indicators serve as confirmation for those of us who need to double check our findings on a regular basis.
  5. Active Trading Fundamentals

    Market Breadth: A Directory Of Internal Indicators

    Discover the indicators that measure the force of the bulls and bears, telling you what a simple price chart cannot.
  6. Insurance

    Exploring Oscillators and Indicators: Conclusion

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The goal of every short-term trader is to determine the direction of a given asset's momentum and to attempt to profit from ...
  7. Trading Strategies

    3 Key Signs Of A Market Top

    Learn the best ways to foresee market corrections and how to profit from them.
  8. Active Trading Fundamentals

    Market Breadth: Introduction

    Each day at the posts of specialists at the New York Stock Exchange, and inside the networked computers of Nasdaq market makers, a battle between bulls and bears rages. Each side tries to pull ...
  9. Active Trading

    Introduction To The Arms Index

    Developed in 1967 by Richard Arms, this volume-based breadth indicator can be applied over various time periods.
  10. Technical Indicators

    Discovering the Absolute-Breadth Index and the Ulcer Index

    It's time to acquaint yourself with these lesser-known yet effective technical indicators.
RELATED FAQS
  1. What are the most common market indicators experienced traders follow?

    Take a look at some of the most popular market indicators used by technical analysts, including the advance/decline line ... Read Answer >>
  2. What are the best technical indicators to complement the Haurlan Index?

    Discover which technical indicators make the best complements to the Haurlan index, a market breadth tool designed to identify ... Read Answer >>
  3. What are the most common market indicators to follow the European stock market and ...

    See which market indicators and major market indexes are used most frequently by traders and analysts to measure the European ... Read Answer >>
  4. What is the difference between market indicators and economic indicators?

    Read about the differences between technical market indicators and general economic indicators, and learn how traders and ... Read Answer >>
  5. How do traders interpret a divergence of the Haurlan Index?

    Learn about the Haurlan Index, a three-part market breadth indicator used to qualify the strength of market movements and ... Read Answer >>
  6. What is a common strategy traders implement when using the McClellan Oscillator?

    Read about the common trading signals that are generated by the McClellan oscillator, a market breadth indicator often applied ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center