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

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
Related Articles
  1. Insights

    Digging Deeper Into Bull And Bear Markets

    Discover why it's important to know the characteristics of the two types of market conditions.
  2. Trading

    Discovering The Force Index

    Learn how to measure the power of bulls behind rallies and bears behind declines.
  3. Trading

    The Elder-Ray Indicator: Seeing Into The Market

    Elder-ray helps determine the strength of competing groups of bulls and bears so you know when to buy and when to short.
  4. Trading

    Confirming Price Movements With Volume Oscillators

    Use this indicator to validate a change in price direction and moving averages.
  5. Investing

    Tic-Tac-Toeing Your Way To Better Returns

    Point-and-figure charts eliminate the noise surrounding a stock to help you determine where it's headed.
  6. Trading

    3 Key Signs Of A Market Top

    Learn the best ways to foresee market corrections and how to profit from them.
  7. Investing

    Finding Success Where Indicators Fail

    Trade what you see: Follow the charts, buy breakouts and honor stops. We'll look at a case study to show you how.
  8. Investing

    How to Use Trading Indicators Effectively

    Careful and effective use of technical indicators can improve your odds of finding an investment’s best entry and exit points.
Frequently Asked Questions
  1. Do interest rates increase during a recession?

    Learn why interest rates do not rise in a recession; in fact, the opposite happens. Identify the factors that reduce interest ...
  2. What is the difference between deflation and disinflation?

    Learn what deflation and disinflation are, how supply and demand affect price levels, and the difference between deflation ...
  3. What rights do all common shareholders have?

    Learn what rights all common shareholders have, and understand the remedies that can be taken if those rights are violated ...
  4. What does CHIPS UID mean?

    Learn what CHIPS UID stands for and how it facilitates the transfer of funds as the back-end of the ACH network for both ...
Trading Center