Click here to Login








Gap Up/Down Market Breadh Indicator

by Brian Brown, 4839 days ago
Share |






The Gap composite is a market breadth indicator that measures and compares the number of stocks that gapped up and those that gapped down. This market indicator calculates, for each trading bar, the average of the gap difference formula of all stocks in the universe. The Gap difference formula consists of subtracting "GapUp" (function returns 1 if there is a gap up, 0 otherwise) to "GapDown".

Interpretation:
0: If the gap composite value is equal to zero then this means that bullish and bearish stocks are of equal strength. The number of stocks gapping up is exactly the same as the number of stocks gapping down.
Higher than 0: The number of stocks gapping up is higher than the number of stocks gapping down. A value of 10% tells us that there are 10% more stocks that had a gap up that those that had a gap down.
Lower than 0: The number of stocks experiencing a gap down is higher than the number of stocks experiencing a gap up.
100: A gap up occurred in all stocks during the current day.
-100: A gap down occurred in all stocks during the current day. It is very unlikely that an extreme value occurs.

The Gap market breadth indicator should be used in addition with a smoothing technical indicator such as the simple moving average.

A divergence between the gap composite and a market index such as the S&P 500 or NASDAQ is usually an indication that a market reversal is imminent. Prepare your stops and be ready to close your positions if such divergence occurs.


Share This ->
Share |


You have to log in to bookmark this object
What is this?




Type: Composite Index

Object ID: 1031


Country:
All

Market: Stock Market

Style:
Technical Analysis

Reviews
You must log in first

Join now
and get instant access for free to the trading software, the Sharing server and the Social network website.
Click here


Related objects

Empty

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Technical Analysis


Fundamental Analysis



Random Blog Posts

How to combine long, short and custom portfolio strategies within a trading system

Step by step on how to get free realtime/delayed data for stocks, futures and currencies

Compare stocks and securities by creating a relative performance chart

Buy the best/top rated stocks or how to create powerful rank based trading systems

Ranking stocks based on their correlation with the S&P 500 Index

Creating Stock & Market Short Interest Ratios using Historical Short Sale Data

Select the best ETFs combination to maximize your return and reduce your investment risk

How to turn any ordinary trading strategy into a very profitable one

Show All

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object






QuantShare
Product
QuantShare
Features
Create an account
Affiliate Program
Support
Contact Us
Trading Forum
How-to Lessons
Manual
Company
About Us
Privacy
Terms of Use

Copyright © 2024 QuantShare.com
Social Media
Follow us on Facebook
Twitter Follow us on Twitter
Google+
Follow us on Google+
RSS Trading Items



Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.