Market Breadth Toolkit [LuxAlgo]

The Market Breadth Toolkit allows traders to use up to 6 different market breadth measures on two different exchanges, for a total of 12 different views of the market.

This toolkit includes divergence detection and allows setting custom fixed levels for traders who want to experiment with them.

🔶 USAGE



The main idea behind Breadth is to measure the number of advancing and declining issues and/or volume by exchange to have an idea of the underlying strength of the whole exchange.

On the other hand, thrusts represent big impulses in the breadth, as it is described by technicians to be the start of a new bullish trend.

By default, the Toolkit is set to "Breadth Thrust Zweig", with divergences enabled.

We will now explain all the different breadth measures available in the toolkit.

🔹 Deemer Breakaway Momentum



The "Breakaway Momentum" is a concept related to market breadth introduced by legendary technical analyst Walter Deemer.

As stated on his website:

We coined the term "breakaway momentum" in the 1970's to describe this REALLY powerful upward momentum

and:

We now know that the stock market generates breakaway momentum when the 10-day total advances on the NYSE are greater than 1.97 times the 10-day total NYSE declines OR the 20-day total advances on the NYSE are greater than 1.72 times the 20-day total NYSE declines.

As we can see in the chart above, which shows both methods, momentum is identified when the ratio of advancing issues to declining issues is greater than 1.97 for the 10-day average or 1.72 for the 20-day average.

🔹 Zweig Breadth Tools



Legendary trader and author Marting Zweig, best known as the author of "Winning on Wall Street" and the creator of the Put/Call Ratio.

In this toolkit, we feature two of his other tools:

• Breadth Thrust: Number of Advancing / (Number of Advancing + Number of Declining Stocks)
  
• Market Thrust: (Number of Advancing × Advancing Volume) — (Number of Declining Stocks × Declining Volume)
  

As we can see on the above chart, the Breadth Thrust printed a new signal on April 24, 2025, which is a bullish signal on the daily chart that can last several months, considering the previous signals.

On the right side, we have the Market Thrust as the delta between advancing minus declining volume weighted.

🔹 Whaley Measures



Wayne Whaley received the 2010 Charles Dow Award from the CMT Association, as stated on their website: "In 1994, the CMT Association established the Charles H. Dow Award to recognize outstanding research in technical analysis."

We include two of the tools from this paper:

• Advance Decline Thrust: Number of Advancing / (Number of Advancing + Number of Declining Stocks)
  
• Up/Down Volume Thrust Advancing Volume / (Advancing Volume + Declining Volume)
  

The chart above shows Thrust signals at extreme readings as described in the paper.

🔹 Divergences



The divergence detector is enabled by default, traders can disable it and fine-tune the detection length in the settings panel.

🔹 Fixed Levels



Traders can adjust the Thrust detection thresholds in the settings panel.

In the image above, we can see the Deemer Breakaway Momentum 10 with the original threshold (below) and with the 3.0 threshold (above).

🔶 SETTINGS

• Breadth: Choose between 6 different breadth thrust measurement methods.
  
• Data: Choose between NYSE or NASDAQ exchanges.
  
• Divergences: Enable/Disable divergences and select the length detection.
  

🔹 Levels

• Use Fixed Levels: Enable/Disable Fixed Levels.
  
• Top Level: Select the top-level threshold.
  
• Bottom Level: Select bottom level threshold.
  
• Levels Style: Choose between dashed, dotted, or solid style.
  

🔹 Style

• Breadth: Select breadth colors
  
• Divergence: Select divergence colors