IcemanRan

Divergence of Market Breadth & Price deduction indicator

How it begin?
Traders and investors use market breadth in order to assess the index’s overall health. Market breadth can be a reliable, if not an accurate, indicator of an upcoming price rise in the index. Similarly, it can also provide early warning signs for a future price decline.

What is it?

market breadth in this case refer to percentage of stocks above 20 Simple Moving Average ,which could be used as a barometer for the market.

How it works?
This paticular indicator compare the divergence of Nasdaq 100 and Russell 2000 percentage of stocks above 20 Simple Moving Average .
This indicator also include a deduction price method ,which is inspired from LEI & LoneCapital
Release Notes: minor update
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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