Market Breadth data helps the traders to investigate the underlying strength or weakness of moves for a given index or sector. The traders can analyze this strength or weakness, (which is apparently not visible while directly looking at the chart of an index) and calculate the overall health to determine the next move of the index.
Hence, Market Breadth data can provide the traders with early-stage signals for a possible future price rise or decline. If more stocks within an index are undergoing advancement than the stocks declining, then it is an indication for positive market breadth, confirming index price rise. However, a negative market breadth would prevail if more companies are experiencing a fall in their stock prices.
TrendSpider provides the traders with an option to add the Market Breadth Data as a lower indicator for determining the upcoming market trend or sentiment signals for an index or exchange, or industry.
In this documentation, we will explore how to:
- Add Market Breadth Data
- Interpret Market Breadth Data
- Customize Market Breadth Data
Let’s get started 🚀
Add Market Breadth Data
Step 1: Navigate to the top menu bar and click on the vertical ellipsis icon (⋮) adjoining the Other Data button.
Step 2: Out of all the enterprise-grade data to pick from the dropdown list, select the Market Breadth, and the Market Breadth data will appear as a lower indicator on the chart.
Interpret Market Breadth Data
List & Series
The lower indicator will reflect the Market Breadth data based on the List & Series defined.
- List: Define the list of stocks belonging to an industry, sector, or indices you want to compare against.
- Series: Define the type of Market Breadth you want to use.
For example, you can view the number of stocks in the S&P 500 (List) that are currently trading above their 50 Day SMA (Series) in terms of percentage through Value Line.
Note: For now, TrendSpider provides only 1 year of Market Breadth data.
**Note: For now, the Market Breadth data is biased, which means that it only respects a list of constituents "as of now", ignoring any changes in index lists in the past.
The Value Line (colored in dark blue by default) is representing the percentage of stocks in the S&P 500 that are trading above or below the 50 Day SMA.
Current Ticker Behavior: Follows & Resists
Follows Line is formed when the ticker symbol selected on the chart has followed the criteria (Series) of the Market Breadth data at a given date. Whereas, Resists Line is formed when the ticker symbol selected on the chart fails to follow the criteria (Series) of the Market Breadth data at a given date.
For example, if you are browsing the "above SMA50" series on 21st Jan 2022 and your symbol was above its Daily SMA50, then the corresponding vertical line would be Follows line, (by default represented in the dark blue color).
In the snippet below, the Follows lines are the vertical lines in the dark blue color and the Resists Lines are the vertical lines in the light blue color.
Customize Market Breadth Data
You can always customize and edit the indicator as per your needs by clicking on the vertical ellipsis icon ⋮
A modal will appear providing you with a set of customization options.
You can edit the following configurations to customize the Market Breadth Data:
- Color & Stroke
You can select any list of symbols you want to compare against. It can be an index, industry, or sector. Click on the Apply button after making the relevant selection.
You can select the type of Market Breadth data you want to measure from the dropdown list. TrendSpider’s Market Breadth calculates the following daily data: .
- A/D Ratio: Ratio of stocks advancing to stocks declining
- Above SMA: Percentage of stocks in a given list which do satisfy a given criteria
- New High/New Low: Percentage of stocks in a given list which fulfills a given criteria
Click on the Apply button after making the relevant selection.
Note: Market Breadth Data is built off Daily candles (with no ext. session data), using US Consolidated Data*
Note: Behavior of a current stock type of data is only available for stocks and ETFs and OTCs*
You can enable or disable the ticker. If the Ticker is disabled, then the Follows and Resists Lines would no longer be visible.
Color & Stroke
You can change the color of the Resists line, Follows line, and Value Line. Click on the Apply button after making the relevant selection.
You can also adjust the thickness of the Value Line using the slider.