logo
Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

Options
Go to last post Go to first unread
Patrick  
#1 Posted : Friday, August 19, 2005 3:59:34 PM(UTC)
Patrick

Rank: Advanced Member

Groups: Registered, Registered Users, Subscribers
Joined: 9/8/2004(UTC)
Posts: 2,266

Was thanked: 1 time(s) in 1 post(s)
The Breadth Thrust indicator is a market momentum indicator developed by Dr. Martin Zweig. The Breadth Thrust is calculated by taking a 10-day exponential moving average of the advancing issues divided by the advancing plus declining issues. According to Dr. Zweig a Breadth Thrust occurs when, during a 10-day period, the Breadth Thrust indicator rises from below 40 percent to above 61.5 percent. A "Thrust" indicates that the stock market has rapidly changed from an oversold condition to one of strength, but has not yet become overbought. Dr. Zweig also points out that there have only been 14 Breadth Thrusts since 1945. The average gain following these 14 Thrusts was 24.6 percent in an average time frame of 11 months. Dr. Zweig also points out that most bull markets begin with a Breadth Thrust. To plot the Market Breadth in MetaStockTM for Windows you will need to: * Create a composite security of the Advancing Issues + Declining Issues in The DownLoaderTM. * In MetaStock open a chart of the composite and a chart of the Advancing Issues. * Tile the charts so you can see both of them on the screen. * Drag the plot of the composite into the chart of the Advancing Issues. * Create the custom indicator: mov( C / P, 10, E ), then plot it on top of the plot of the composite (the composite's plot will turn a purplish color ). If you get a flat line then it was not plotted directly on top of the composite's plot. * You can then right-click on the Breadth Thrust, select Breadth Thrust Properties, go to the Horizontal Lines page and add horizontal lines at 40 and 60.
Users browsing this topic
Guest (Hidden)
Similar Topics
NYSE Breadth Thrust (Formula Assistance)
by henry1224 4/7/2005 1:18:45 AM(UTC)
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.