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.

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RELATED FAQS
  1. Why is the Toraku Index important for analysts of the Tokyo Stock Exchange?

    Learn how the Toraku Index is used to predict market trends on the Tokyo Stock Exchange, and understand how market breadth ... Read Answer >>
  2. 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 >>
  3. Why is the Breadth Indicator useful for tracking the overall economy?

    See how analysts might use technical breadth indicators to judge the health of the economy as a whole, and learn why one ... Read Answer >>
  4. Why is it important for traders and investors to follow market indicators?

    Learn about market indicators such as the Advance/Decline Index and market breadth. Discover why these indicators are so ... Read Answer >>
  5. 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 >>
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