Breadth Indicators

Discussion in 'Index Futures' started by Virtuoso, May 6, 2004.

  1. I thought it might be interesting to start a thread dedicated to discussing the various breadth indicators traders like to use to help "game" the index futures (ES,YM,NQ,ER2) -- on both an intra/inter day time frame.

    I am not so interested in discussing sectors/components or intermarket relationships that tend to have an effect on the broad indices, but indies such as the Trin, Tick, Vix, Cum A/D Line, etc, etc.

    I personally have never relied on any breadth indicators to help aid me in my decision making process when gaming the broad indices, not because I ever discounted the value of such tools, but more because I just figured I would go straight to the source (actual price/vol) of the index. Recently though I have been interested in exploring the possible value of such tools -- hence the thread.

    Anyway, as I have already stated I am not really knowledgeable enough to kick the thread off myself, but I hope some others can step up...

    PEACE and Good-Trading,
  2. Bullish Percent Index The Bullish Percent Index (BPI) is a popular market breadth indicator that is calculated by dividing the number of stocks in a given group (an exchange, an industry, etc.) that are currently trading with Point and Figure buy signals, by the total number of stocks in that group. Bullish Percent levels that are above 70% are considered overbought, whereas levels below 30% are considered oversold. Strong buy signals occur when the Bullish Percent Index falls below 30% and then reverses up by at least 6%. Conversely, promising sell signals occur when it goes above 70%, and then reverses down by at least 6%. It is important to note that the Bullish Percent Index is not something that can be applied to a single stock but rather an index that is calculated for a group of stocks.$BPCOMPQ
  3. Ironic that you should bring up the Bullish Percent indicator as this is the very indicator that has sparked my interest in the various breadth indicators and compeled me to start this thread...

    Do you have any experience with it? Do you currently apply it to your own analysis?
  4. No real experience, it was actually a favorite of a poster on TMF message board.