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2001issue C131-6

Market breadth, beta, and volume-price confirmation

The archive treats a long idea as a two-step check: first a market-breadth read of whether the major U.S. exchanges are expanding or contracting, then a test that the candidate stock participates and that its own price confirms the indicated direction.

  • Market-breadth is a daily momentum read of 52-week new highs and lows, advancing versus declining issues, and up versus down volume, not a stock-picking score.
  • A beta of 1.0 is described as highly correlated movement with the chosen market, while a beta above 1.0 is a faster rise or fall. Visual trend comparison is only a rough substitute, and published betas are often measured against the S&P 500.
  • The thrust-oscillator multiplies advancing issues by advancing volume and declining issues by declining volume. Because that series is noisy, a 10-day simple moving-average is applied first, then +30 and -30 mark turning points.
  • Long-side buy and sell considerations are generated only where nhl-momentum peaks or valleys coincide with those overbought or oversold crossings, and only if price-confirmation follows.
Entries in this reading3 entries
Current trackMarket breadth120 readingsVolume-price analysis129 readingsMoving average449 readings

Market-breadth as a daily momentum read

Market-breadth is presented as a daily momentum read built from 52-week new highs and lows, advancing versus declining issues, and up versus down volume on the major U.S. exchanges. Those daily counts are used as a read on market momentum rather than as a stock-picking score.

The same tape is later paired with advancing and declining volume. That pairing is the volume-price-analysis step: issue counts and volume describe the market condition, while the candidate stock's own price path is held back as a separate confirmation.

Beta and visual trend comparison

Beta is the stock's observed co-movement with a chosen market. A stock beta of 1.0 is described as highly correlated movement with that market, while a beta above 1.0 is described as a faster rise or fall than the market. Values near 1 imply matched trends. Values well above 1 imply faster moves in the same direction.

Visual trend comparison is offered as a rough substitute for a formal beta calculation. The archive cautions that published betas are often measured against the S&P 500 rather than the market a trader actually has in mind.

In the source charts, Microsoft downtrends are described as less severe than contemporaneous Nasdaq composite downtrends, while Cisco's downtrends are described as more severe. That contrast produces a higher illustrated beta for Cisco than for Microsoft.

Cisco versus Microsoft and the Nasdaq Composite

After the January 2001 bounce Cisco keeps sinking while Microsoft returns to flat and the Nasdaq settles near a 50 percent loss — the visual case for Cisco’s 1.9 beta versus Microsoft’s 1.0. Percentages were read from the Yahoo Finance change scale printed 24 August 2001, not from a table.
After the January 2001 bounce Cisco keeps sinking while Microsoft returns to flat and the Nasdaq settles near a 50 percent loss — the visual case for Cisco’s 1.9 beta versus Microsoft’s 1.0. Percentages were read from the Yahoo Finance change scale printed 24 August 2001, not from a table.CSCO · Daily · 2000-10-01T00:00:00.000Z to 2001-08-24T00:00:00.000Z

Approximate readings from a 20-percentage-point grid, rounded to the nearest 2 percent. The window is the printed 1-year comparison ending 24 August 2001.

The thrust-oscillator and a moving-average

The thrust-oscillator is a breadth-and-volume construction. Advancing issues are multiplied by advancing volume and declining issues by declining volume. The source contrasts that same-side pairing with TRIN's crossed multiplication.

Because the thrust-oscillator is described as noisy, the source first applies a 10-day simple moving-average. That moving-average is a fixed-lookback smoother so overbought and oversold thresholds can be compared across a defined sampling interval. Historically observed thresholds of +30 and -30 are then treated as turning-point markers on the Microsoft example.

Where buy and sell considerations are generated

Nhl-momentum is the new-high versus new-low oscillator used to mark peaks and valleys in bullishness or bearishness. Long-side buy and sell considerations are generated only where those nhl-momentum peaks or valleys coincide with overbought or oversold crossings on the smoothed thrust-oscillator.

The source's closing rule is that breadth measures are a condition for a trade and should be used only if price confirms the indicated direction. Price-confirmation is that rule in full: a breadth signal is only a condition for a trade, and only if the stock's own price subsequently moves in the indicated direction.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
59 of 71 in the Market breadth track
20011-1 pp.Next on Market breadthRegime context from relative venue volume, breadth, and intermarket spreadsA 21-day moving average of Nasdaq total trading volume versus NYSE volume was used as a relative-venue-volume baseline to argue that Nasdaq participation had fallen from a historical standpoint.
All readings on this track · 71 readings
  1. 1987How a failed rebound, weak breadth, and cycle dates broke the 1987 bull case
  2. 1988Diagnosing market bottoms with breadth, divergence and averages
  3. 1988Diagnosing index tops with breadth divergences
  4. 1988Record highs versus seven-day breadth and divergence
  5. 1989Constructing a percentage-scaled internals composite
  6. 1989Constructing a weekly block-tick breadth z-score
  7. 1989Constructing a dual-rate advance-decline oscillator
  8. 1989Normalize advance-decline series for a common-scale comparison
  9. 1990Unchanged-issue share as a narrow-breadth case study
  10. 1990Evaluating daily and weekly unsigned plurality breadth
  11. 1990Constructing paired new-high and new-low breadth indicators
  12. 1990Ten-day HI/LO extremes as a long-horizon breadth signal
  13. 1990Confirming index cycles with breadth, volume, and waves
  14. 1990Index cycle gates from breadth and volume
  15. 1990Constructing advance-decline breadth indicators
  16. 1990Weekly advance-decline oscillator: weight map, extremes, and spike cycle
  17. 1990Price-weighted construction distorts breadth, support, and trend
  18. 1991A peak-sequence test from the new-highs-to-advances-ratio
  19. 1991Fuzzy rules that turn daily market-breadth into a session consensus
  20. 1991From daily breadth tallies to a weighted consensus signal
  21. 1991Retesting market-breadth when market structure changes
  22. 1991Constructing TRIN as a breadth-volume ratio
  23. 1991Build the market clock before you read a price bar
  24. 1991A construction audit of the long-horizon trading index
  25. 1991Independent formula timers kept as a testable combination
  26. 1992When identical TRIN prints come from different pairings
  27. 1992Grade closing tick before a next-session breadth hypothesis
  28. 1992Noncumulative advance-decline swing confirmation
  29. 1992Five-day sum construction of the trading index
  30. 1992Daily closing-trin extremes and next-day direction
  31. 1992A three-layer audit: regime, breadth, and group RSI
  32. 1992Constructing a nine-state trend, momentum, and breadth score
  33. 1993Constructing a market-volume-impact rating from nested averages
  34. 1993When advance-decline confirmation counts the wrong universe
  35. 1993Constructing breadth momentum from advance-decline smoothing
  36. 1993Constructing a cumulative market-thrust line
  37. 1994Three-horizon construction of the Haurlan index
  38. 1994Checklist-gated session entry in 1993 index futures
  39. 1994Read one advance-decline pair through three windows
  40. 1994Constructing calibrated market-breadth summation indexes
  41. 1994Constructing a two-speed advance-decline oscillator and a calibrated summation
  42. 1995NYSE tick extremes and candlestick reversal entries
  43. 1995Assembling range, breadth, and a stored stop into one procedure
  44. 1995Restating market breadth timing rules as ratios
  45. 1995Constructing breadth ratio gates after lookback drawdowns
  46. 1995Building a short-range breadth and price oscillator
  47. 1996Constructing a smoothed advance-decline trend filter
  48. 1996Smoothed advance-decline alerts at the 1987 and 1990 turning points
  49. 1996Constructing breadth, RSI, and stochastic range filters
  50. 1996New-high and new-low counts as a breadth construction
  51. 1996Constructing the four-input breadth-volume ratio
  52. 1996Constructing the McClellan oscillator and a calibrated summation index
  53. 1996Declare the oscillator seed, then calibrate only the summation index
  54. 1997Three-gate centered strength in market-breadth construction
  55. 1997Daily advance-decline and new-high new-low breadth signals
  56. 1999Index-fund positions as a majority-vote committee
  57. 2000Tick, tiki and TRIN as a three-layer session confirmation stack
  58. 2000Constructing an advance-decline oscillator from one listed tape
  59. 2001Market breadth, beta, and volume-price confirmation
  60. 2001Regime context from relative venue volume, breadth, and intermarket spreads
  61. 2002When NYSE breadth misreads operating-stock participation
  62. 2003Two-gate breadth divergence and a trend filter for rally tops
  63. 2003Market internals confirm or diverge from the index
  64. 2004Constructing the McClellan oscillator and summation index
  65. 2005Intraday index-futures divergence as a three-part session hypothesis
  66. 2005Breadth summation levels as a short-term signal filter
  67. 2005Checking trend versus range with breadth and divergence
  68. 2011Constructing a Nasdaq hi-lo index from highs, lows, and issues traded
  69. 2013Cumulative advance-decline versus a one-year average
  70. 2013A one-year breadth average as a participation gate
  71. 2015Falsifying a healthy correction with breadth and support
By fieldMarket breadth101 readingsBy year200176 readings
All 120 readings tagged Market breadth
Also on Market breadth5 readings
1991Build the market clock before you read a price bar1991A construction audit of the long-horizon trading index1992Five-day sum construction of the trading index1993Constructing a market-volume-impact rating from nested averages1990Confirming index cycles with breadth, volume, and waves