US30 Market Breadth EMA20 [INVESTIC]

27 Ogo 2024

Market Breadth Indicator is a tool designed to give you a snapshot of the overall strength of the Dow Jones Industrial Average (DJIA). It shows how many of the 30 Dow Jones stocks are trading above their 20-day Exponential Moving Average (EMA) and displays this data in a histogram, with values ranging from 0 (no stocks above the 20-day EMA) to 30 (all stocks above the 20-day EMA). It’s a quick and easy way to see how many stocks are trending positively within the Dow.

Why US30 breadth Indicator?
Market breadth helps investors assess whether the market is broadly strong or weak. When more stocks are trading above their 20-day EMA, it suggests a healthy, bullish environment. Conversely, fewer stocks above this threshold could indicate a weakening market or a potential downturn.
The US30 Market Breadth indicator is essential as it shows overall market sentiment, helping users identify emerging trends, confirm the direction of the market, and make more timely trading decisions.
Usage
Trend Following: Market Breadth can be use to find short-term lows or peaks. As the histogram rises above the green zone in the session it may indicate increasing buying pressure, suggesting opportunities for quick long positions from the low.
Reversals: Market Breadth can be use to spot potential rebound in the near term, for example, a rising number of stocks while the index declines could signal a quick short-term trades.



Features
Green: 0-6 stocks above the 20-day EMA
Yellow: 7-24 stocks above the 20-day EMA
Red: 25-30 stocks above the 20-day EMA

29 Okt 2024

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Update threshold

21 Nov 2024

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https://www.tradingview.com/x/p1TTfJTN/

The US30 Market Breadth EMA20 indicator evaluates the overall health and momentum of the Dow Jones Industrial Average (US30) by analyzing the proportion of its constituent stocks trading above or below their 20-day Exponential Moving Average (EMA20). By going beyond the index's headline number, this indicator provides a clearer picture of market strength or weakness, highlighting whether the majority of stocks are participating in the current trend.
It displays this data in a histogram, with values ranging from 0 (no stocks above the 20-day EMA) to 30 (all stocks above the 20-day EMA). This visualization offers a quick and easy way to see how many stocks are trending positively within the Dow Jones, serving as a valuable tool for assessing the sustainability and breadth of market movements within the Dow Jones.

Why US30 Market Breadth EMA20 Indicator?
The US30 Market Breadth EMA20 serves as an effective tool for identifying shifts in the broader trend of the majority of Dow Jones stocks. By tracking the color changes in the histogram displayed on the indicator.

Function of Market Breadth EMA20 Indicator:
The histogram simplifies interpretation by dividing the data into three zones. When the histogram falls within the;
- Green zone: Represents 0 to 6 stocks above the 20-day EMA, indicating weak market breadth, where only a few stocks show positive trends.
- Yellow zone: Represents 7 to 24 stocks above the 20-day EMA, indicating moderate market strength and the emergence of a market trend as positive momentum increases.
- Red zone: Represents 25 to 30 stocks above the 20-day EMA, indicating strong bullish momentum and broad market participation.


Application of Market Breadth EMA20 Indicator:
- Spot Points: The chart highlights specific moments where the histogram breaks from the Green zone to the Yellow zone, indicating the start of an emerging uptrend. These transitions often precede price increases, offering a potential early positive entry.
- Divergence Identification: Divergence between the histogram and price movement in the shorter term can act as an additional confirmation tool, helping to identify optimal entry points.

22 Nov 2024

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