Toraku Index

AAA

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. Breadth Indicator

    A mathematical formula that uses advancing and declining issues ...
  2. Advance/Decline Line - A/D

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

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

    A market breadth indicator that is based on the difference between ...
RELATED FAQS
  1. Why is the Toraku Index important for analysts of the Tokyo Stock Exchange?

    The Toraku Index is a technical indicator for the Tokyo Stock Exchange that compares the number of advancing versus declining ... Read Full Answer >>
  2. What's a good forex strategy to use when spotting a Wedge-shaped Pattern?

    Use wedge-shaped patterns to identify bullish or bearish price action when trading currencies in the foreign exchange (forex) ... Read Full Answer >>
  3. How do I perform a financial analysis using Excel?

    Investors can use Excel to run technical calculations or produce fundamental accounting ratios. Corporations use Excel to ... Read Full Answer >>
  4. How do I use Trade Volume Index (TVI) to create a forex trading strategy?

    The trade volume index (TVI) indicates whether a security is being accumulated or distributed and is calculated using intraday ... Read Full Answer >>
  5. Why is the Trade Volume Index (TVI) important for traders and analysts?

    The trade volume index (TVI) is important for traders and analysts because it indicates whether an asset is being accumulated ... Read Full Answer >>
  6. What is the Trade Volume Index (TVI) formula and how is it calculated?

    The trade volume index (TVI) measures the amount of money flowing in and out of a security or the market. The TVI depends ... Read Full Answer >>
Related Articles
  1. 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.
  2. Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi On Wall Street

    From samurai to sushi, there's no denying the East Asian influence on investing terminology.
  3. 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.
  4. 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.
  5. Technical Indicators

    Will These High-Flying Stocks Stay Hot in 2015?

    These 10 stocks were on fire in 2014. Will they stay hot?
  6. Chart Advisor

    These REITs Are Looking Good Right Now

    These REITs are in strong uptrends and looking to go higher.
  7. Chart Advisor

    Commodity Traders are Watching These 3 Charts

    As we head towards the summer months, many commodity traders are looking to diversify their holdings and to protect themselves against inflation.
  8. Trading Strategies

    Analyzing The Market With Trend Mirrors

    Past price action can exert a powerful influence on current rallies and selloffs.
  9. Technical Indicators

    Reading Trends With Moving Average Ribbons

    Moving average ribbons reveal subtle relationships between price, time and trend.
  10. Chart Advisor

    The Stock Market's Uptrend Is Set To Continue

    The most common debate amongst traders is when the prolonged uptrend across the financial markets will come to an end.

You May Also Like

Hot Definitions
  1. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  2. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  3. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  6. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
Trading Center