High-Low Range Charts - Market Breadth Analysis

Discussion in 'Technical Analysis' started by viktor_k67, Nov 12, 2015.

  1. Cswim63

    Cswim63

    Are you saying that breadth is an important indicator for the stock market? You may have discovered something here.
     
    #11     Nov 15, 2015
  2. wrbtrader

    wrbtrader

    The markets most discussed market breadth index is usually the VIX follow by the AD Lines and then the Put/Call ratio then followed by the TRIN. So yes, market breadth indexes are well followed.

    Note: I saw a survey once a few years back in a financial magazine that listed in order the most discussed market breadth indexes and this High Low Range charts was not on the list and its rarely mentioned at any other location online.

    This High Low Range charts must be proprietary index charts, very interesting and more interesting if there's available intraday charts. I would like to compare the intraday charts of High Low Range to the market breadth New Highs New Lows intraday charts to see if it provides better information to help with day trading.
     
    #12     Nov 15, 2015
  3. This is correct. So instead of counts over and under 50%, I want the average of the percentage for a portfolio.
     
    #13     Nov 16, 2015

  4. I am sorry, I have only daily charts at this moment. In case of going into intraday time-frames, I belie we should not push from 52-week lows and 52-weeks highs as we may have some delay unaceptabe for intraday traders. Something like 5-day (1-week) lows and highs for 1-minute charts could be OK, yet, I did not test it.
     
    #14     Nov 21, 2015
  5. I got you, instead of seeing 400 bearish and 100 bullish stocks on S&P 500 you would prefer seeing 80% bearish and 20% bullish.
     
    #15     Nov 21, 2015
  6. Since an index price is directly calculated from the price of the stocks listed in this index, Breadth analysis or summary analysis of stocks listed in this index should help. You may manually analyse each of 30 DOW stocks, but you cannot go through 2000 NYSE Composite or Russell 2000 stocks manually and Breadth analysis may help you here.
     
    #16     Nov 21, 2015
  7. No, you still don't understand. I would want to see the average % and it would be a number like 60.562%. That would indicate that collectively all of my stocks have an average % of that figure. I would compare that to the index. Both calcs use a weighted average based on $ allocation. In the case of most indices, they are already price-weighted.
     
    #17     Nov 22, 2015
  8. So, lets say a 1st stock is traded 20% from its 52-week low, 2nd stock is trade 25% from its 52-week low and etc. The average would be (20+25+...)/(number of stocks).

    Is that what you are looking for?
     
    #18     Nov 22, 2015
  9. Yes, you got it except you must weight by the $ holding value of the stock.
    Avg% = ($5k * .20 + $10k * .25) / $15k

    Got it ?
     
    #19     Nov 23, 2015
  10. #20     Nov 23, 2015