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03/14/2022 |

Software Update: Market Breadth Dynamics

Hello everyone, and welcome to a brand new software update. In this release, we introduce a new capability classified under “Other Data” called Market Breadth. Details after the jump!

Market Breadth is a powerful way to measure the overall state of an index or market. Investopedia defines Market Breadth as “…an indicator that analyzes the number of stocks advancing relative to those that are declining in a given index or on a stock exchange. Positive market breadth occurs when more stocks are advancing than are declining. This suggests that the bulls are in control of the market’s momentum and helps confirm a price rise in the index. Conversely, a disproportional number of declining securities is used to confirm bearish momentum and a downside move in the stock index.”

You can now enable Market Breadth under the “Other Data” button in the top toolbar. You can then customize the specific details of your Market Breadth indicator under its settings. Here is what it looks like when added to your screen:

In this chart, the Market Breadth indicator is at the bottom of the screen. In this example, it is configured to show the percentage of stocks in the S&P 500 that are trading above their 50 day simple moving average.

Note the following details:

  • The line is the percentage of stocks in the index trading above the defined indicator
  • The column indicate whether the symbol you are looking at right now (in this example, Microsoft) was aligned with the overall market. If the columns are dark, then it tells you that Microsoft was also above the 50 period SMA. If they are light, then it tells you that it was not.

You can customize Market Breadth by clicking the 3 dots next to it on the indicator panel:

To customize the settings of Market Breadth, click the 3 dots.
The settings dialog contains a few options you can customize about it:

Options are:

  • List = default spx500
  • Series = default Above SMA

Lists:

  • Any industry or sector list and certain index lists

Breadth options:

  • A/D Ratio
  • Above SMA(50)
  • Above SMA(200)
  • New 14, 21, 64 highs
  • New 14, 21, 64 lows