MarketSmith Daily Market IndicatorsMarketSmith Daily Market Indicators is designed to mimic the Daily Market Indicators tab found in MarketSmith. This tab contains 4 different secondary indicators to help gauge the health of the overall market.
This indicator allows you to choose which of the 4 indicators to show, as well as which index to pull data from, Nasdaq or NYSE. There is also a snapshot table showing the following:
# of stock advancing and up volume
# of stocks declining and down volume
# of stock unchanged and unchanged volume
# of stocks making new highs and new lows
Now let's look at the 4 indicators and how they work.
Advance/Decline Line
Plots the number of advancing shares vs the number of declining shares. Heavily weighted index stocks can skew price action, this line helps reveal that and whether most stocks are aligned with the trend.
Short Term Overbought/Oversold Oscillator
A 10-day moving average of the number of stocks moving up in price less the number of stocks moving down in price.
10 Day Moving Average of Up & Down Volume
Two 10 day moving averages to represent the volume of all stocks. Blue line: total volume of all stocks moving up in price. Red line: the total volume of all stocks moving down in price.
10 Day Moving Average of New Highs & New Lows
Two 10-day moving average to represent stocks making new highs and new lows. Blue line: The number of stocks making new price highs. Red line: The number of stocks reaching new lows.
Note this indicator is designed to work on a daily time frame chart. Data typically updates 90 minutes after the close. Data may differ from Marketsmith due to different providers, however the general trends are the same.
Investorsbusinessdaily
Webby % Off 52 WeekThis indicator measures a stocks distance from its 52 week high. The concept is based on what Mike Webster shared on his appearance on IBD Live, allowing users to see if a current pullback from the highs is normal compared to historical pullbacks or if more attention is warranted.
It is also important to pay attention to a stocks 52 week high in relation to it's current price to confirm trend, spot potential breakout levels or see if the high acts as an area of resistance.
The indicator has 3 different zones with shaded backgrounds to easily spot the distance off of the high.
Zones
Green Zone - 0 to 8% off highs
Yellow Zone - 8 to 15% off highs
Red Zone - 15 to 25% off highs
Similar Healthy Pullbacks
Possible concern as pullback undercuts previous pullback level
Webby's RSI 2.0Webby's RSI (Really Simple Indicator) 2.0 or version 5.150 as Mike himself calls it, builds upon the original Webby RSI by changing the way we measure extension from the 21-day exponential moving average.
Instead using the percentage of the low versus the 21-day exponential moving average, version 2 uses a multiple of the securities 50 day ATR (average true range) to determine the extension.
Version 2.0 also comes with some new additions, such as measuring the high vs 21-day exponential moving average when a security is below it, as well as an ATR extension from the 10-day simple moving average that Mike looks to as a guide to take partials.
