Someone asked me to script this for them and I was surprised at how well it worked
The idea is to check if the top 22 largest cap companies are above or below their MA
By default, the system uses a 20 MA, but you can set it how you want
It checks if the companies including, QQQ (NASDAQ) and SPY are above their MA's and updates the histogram
I've drawn in simple green price break lines to highlight areas of interest
I like this system because it's SO SIMPLE and it uses more data than just look at one stock, it reads the underlying market for the heavy movers. If the big stocks are doing well, then the market should be doing well too, unless small caps are heavily stalling.
I've also created a strategy based around this and will be posting it soon
Lol, I just did this for the first time myself. Now check out the Volume Leaders, there are some outliers. Volume being the "weight of the market" may offer a differing view. :)
tradingview.com/chart/Jj109Exe/
Compare apples to apples by plotting RSI or Z-score on each of those valuations and you will see the weight of the market will either confirm the tops and bottoms or show divergences via overvaluations or undervaluation in the Market Cap measure.
For example: Google, 4th on the MC list but NOT in the top 20 measured by Volume traded!
tradingview.com/script/zJnBdQco-LargestMarketCaps/