What is the Breadth Thrust Indicator?
The Breadth Thrust Indicator is an indicator used to determine the momentum and direction of the market. It is calculated by looking at the number of advancing issues on an exchange, like the NYSE, divided by the total number of issues including advancing and declining issues, and then generating a 10-day moving average of that percentage.
Key Takeaways:
The start of a new bull market is indicated when it moves from a level of below 40%, which indicates an oversold market, to a level above 61.5% within a 10 day period
This rarely occurs and is vitally important for market watchers
Technical indicators are an important part of technical analysis of the market and are used to predict certain trends in the market
It is one of the most widely watched metrics in the financial industry’
This indicator is based upon the idea that the sudden change of money in the investment markets elevates stocks and points towards increased liquidity
To read more about this indicator, check out the graphic below and this article by Investopedia: Breadth Thrust Indicator Definition
