Market breadth indices show the ratio between the number
of stocks that most recently gave a buy signal compared to the total number of stocks.
The indices can have values between 0 and 100, where 0 means
that all stocks most recently gave a sell signal, and 100 means that all stocks most recently gave a buy signal.
High values (90 or more) are seen as a warning sign that the market is
overheated, and that a significant reaction or reversal may come soon.
Similarly, low values (below 10) are seen as a sign that a strong pressure to sell
soon will be over, and that prices will start rising again.
Three different market breadth indices are computed, one for each of Investtech's three trading
strategies
Short Term Trading Range, Long Term Trading Range
and Moving Average.
The two Trading Range strategies give a buy signal when the price of a stock moves above an earlier top.
The Moving Average strategy gives a buy signal when the short term moving average moves above the long term moving average.
Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.
Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.