SAKATAS HOMMA ๐Ÿ“ˆ
SAKATAS HOMMA ๐Ÿ“ˆ

@SakatasHomma

9 Tweets 21 reads Nov 23, 2022
Market Breadth: ๐Ÿงต๐Ÿงต๐Ÿงต
A thread on the various secondary indicators of market health I use.
1. High Low Index:
(No. of stocks at 52 week high - No. of stocks at 52-week low)/ (No. of stocks 52 week high + No. of stocks 52 week low)
see June bottom divergence with price.
1/n
2. Advance Decline line:
No. of stocks advancing vs No. of stocks declining.
You can simply look at the 2 curves separately or plot the AD line which is (No. of advances - no of decline) + previous days value.
I find looking at the curves separately easier.
2/n
3. % stocks above key MAs (200, 50, 20 MA):
A very simple indicator that gauges LT, MT and ST breadth.
All in HH-HL formation.
i will only be worried if the 200DMA curve is broken to the downside.
3/n
4. Stag 2/4 indicator:
No. of stocks that are in stage 2 and stage 4.
This is built by me and I think it has the potential to serve as an excellent breadth indicator.
4/n
5. Stage 2 breakout indicator:
Again custom built. Slightly different from the one above, it gives the no. of stocks that are moving to stage2 from stage1.
It has the potential to serve as a leading indicator of upward momentum.
This indicator turned bullish on monday.
see
5/n
6. Weekly 52-week close indicator:
No. of stocks making a 52-week high weekly close.
divergences of top and bottom with cnx500 can be vital.
Anticipating an HL and Breakout to the upside.
6/n
7. Weekly sectoral advances:
Gives you information on sector rotation, topping and bottoming.
7/n
That is all.
Remember these are not to be used in isolation and only in conjunction with Price.
Price will always remain the Supreme indicator of all.
8/8
Like the 1st tweet if this was helpful and follow @sakatashomma for more such threads.
cheers
@AnsuAgarwal3
This was an early indication which could probably signalled broader market participation was starting to come in.

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