Market Breadth: A Directory Of Internal Indicators
  1. Market Breadth: Introduction
  2. Market Breadth: Volume Studies
  3. Market Breadth: 52-Week Highs/Lows
  4. Market Breadth: Advance/Decline Indicators
  5. Market Breadth: Point & Figure Internal Indicators
  6. Market Breadth: Conclusion

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 the market in the desired direction while frustrating the other side. As prices move up and down, the winner of the day is printed on each stock's price chart.

Internal indicators can be used to measure the force of the bulls and bears as they exert themselves. Volume indicates traders' level of participation - are they buying stocks that are going up, or selling shares of the losers? Stocks making new highs or lows for the year reveal traders' level of enthusiasm for the direction of market prices. The number of stocks ticking up or down speaks of the breadth of a rally or a retreat, that is, the number of stocks included in the move - something an index or simple price chart cannot do.

Charting volume, new high/low and advance/decline data for a given market is a way to confirm the direction of prices. Various calculations can be applied to these values to fine-tune their signals. In this feature on internal indicators, we will examine the more useful and popular methods of measuring market breadth, from volume to point-and-figure indicators.

Market Breadth: Volume Studies

  1. Market Breadth: Introduction
  2. Market Breadth: Volume Studies
  3. Market Breadth: 52-Week Highs/Lows
  4. Market Breadth: Advance/Decline Indicators
  5. Market Breadth: Point & Figure Internal Indicators
  6. Market Breadth: Conclusion
RELATED TERMS
  1. Breadth Indicator

    A mathematical formula that uses advancing and declining issues ...
  2. Bull Market

    A financial market of a group of securities in which prices are ...
  3. Market Indicators

    A series of technical indicators used by traders to predict the ...
  4. Bull Position

    A long position in a financial security, such as a stock in the ...
  5. Breadth Thrust Indicator

    A technical indicator used to ascertain market momentum. The ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
RELATED FAQS
  1. Are we in a bull market or a bear market?

    A bull market is represented by a rising price trend, and a bear market is indicated by a falling price trend. Given this ... Read Answer >>
  2. 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 >>
  3. Where did the bull and bear market get their names?

    First of all, let's remember that bears are sluggish and bulls spirited and burly. The terms are used to describe general ... 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 is a common strategy traders implement when using the Force Index?

    Learn about how traders and analysts use a momentum oscillator called the force index to measure trend strength for a given ... Read Answer >>
  6. What indicators help define a bull market?

    Learn about a number of various technical indicators traders and analysts use to define and confirm the existence of a bull ... Read Answer >>

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