Market Breadth Labels
Market moves to all time high, however are the majority of the stocks participating? This is important indication of market strength and health.
WHAT IT DOES
The indicator plots various values from market breadth indicators.
It shows the % stocks above certain moving averages for different indexes.
The first 3 cells, display the Advance Decline Ratios:
1. Total Advance Decline Ratio
2. NYSE Advance Decline Ratio
3. Nasdaq Advance Decline Ratio
- coloring for these is simple (value > threshold = color is green, value < threshold = color is red)
The rest of the columns display % stocks above the moving averages.
For example a value of 20 in column 4 ("Stocks above 5D MA), means that only 20% of the stocks are above their 5D moving average.
Line 1 shows current value of the indexes.
Line 2 shows value 5days ago (assuming that 5 trading days = 1 trading week).
- Line 1 Coloring: coloring here is divided between 2 tresholds ( value < lower treshold = color is red, value > lower treshold AND value < higher treshold = color is yellow, value > higher treshold = color is green)
- Line 2 Coloring: no coloring logic is applied here.
HOW TO USE IT
There are several techniques for breadth indicators, many can be read online, but generally these indicators are considered contrarian. This means that high values indicate overbought conditions and low values indicate oversold conditions.
HISTORY AND CREDITS
The idea about this indicator, came from videos of Mark Minervini's market review. He often mentions stock participation as a indicator of the strenght of the market momentum.
Special thanks to QuantNomad, whose courses got me started on programming on PineScript. https://www.tradingview.com/u/QuantNomad/
URL to TradingView Product
Link to TradingView script