Breadth Thrust (By Mack Wilowski) - 趙永祥的數位歷程檔

The Breadth Thrust Indicator is a technical indicator used to ascertain market momentum. It is computed by calculating the number of advancing issues on an exchange, such as the New York Stock Exchange (NYSE), divided by the total number of issues–whether advancing or declining–on it, and generating a 10-day moving average of this percentage.

The indicator signals the start of a potential new bull market when it moves from a level of below 40% (indicating an oversold market) to a level above 61.5% within any 10-day period. This is a rarely occurring sentiment, which carries tremendous import with market watchers.

Share today's term with your network:

Why is 'Breadth Thrust' the Term of the Day?

TradingView

Breadth thrusts are technical indicators that can provide investors with clues about a looming change in the direction of an index or security. Market breadth measures the percentage of stocks within an index that are advancing as opposed to declining, and is typically measured relative to a moving average, which aggregates and smoothes out closing prices over a given period of time. The 50-day and 200-day moving averages are among the most commonly used moving averages tracked by market watchers.

During the initial stages of a bull market, for example, security prices rebound from bear market lows and are “thrust” higher. In such periods, the percentage of stocks advancing far exceeds the percentage of stocks declining, and market momentum is positive. As of last week, roughly 40% of S&P 500 companies were trading above their 200-day moving average, up from 15% in late June. Historically, the market has tended to bottom whenever this ratio falls to, or slightly below, the 15% level. The upward reversal in market breadth over recent weeks is a positive sign for bullish investors, and could indicate that a bottom has been set.

-Mack