Breadth is a term applied to data or calculations other than those based on price — most commonly, comparisons of the number of stocks rising vs. the number falling, but also sometimes incorporating volume. Breadth indicators are sometimes referred to as the market’s “internals” — implying they reflect internal strength or weakness that might not be evident directly in price — and many traders look to various market breadth tools to confirm or discredit the existing trend. Examples of breadth measurements include the number advancing vs. declining stocks, advancing vs. declining volume, new highs vs. new lows, and combinations of these data. Also, a number of derivative indicators have been developed using these numbers — various ratios, moving averages, and oscillators based on breadth data. Read on to learn more.
When you look at your charts, do you understand everything they’re telling you?
Nearly a half century’s worth of research has confirmed time and time again that the beginning, ending, and middle of months, weeks, and days have significance.
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