OPEN-SOURCE SCRIPT
SPX Sector Market Breadth Above 50-DAY Average
This script is a revised version of jchang274's script.
The percentage of stocks trading above a specific moving average is a breadth indicator that measures internal strength or weakness in the underlying index. The 50-day moving average is used for short-to-medium-term timeframes. Signals can be derived from overbought/oversold levels, crosses above/below 50% and bullish / bearish divergences.
Breadth is weakening when the indicator falls and strengthening when the indicator rises. A rising market and falling indicator would raise suspicions on underlying weakness. Similarly, a falling market and rising indicator would suggest underlying strength that could foreshadow a bullish reversal.
The percentage of stocks trading above a specific moving average is a breadth indicator that measures internal strength or weakness in the underlying index. The 50-day moving average is used for short-to-medium-term timeframes. Signals can be derived from overbought/oversold levels, crosses above/below 50% and bullish / bearish divergences.
Breadth is weakening when the indicator falls and strengthening when the indicator rises. A rising market and falling indicator would raise suspicions on underlying weakness. Similarly, a falling market and rising indicator would suggest underlying strength that could foreshadow a bullish reversal.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.