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2001issue C071-4

Market breadth, On-balance volume, and Rate of Change as a combined timing framework

A technician can read On-balance volume, Rate of Change, and Market breadth as three ordinary chart conditions and ask whether a price move is confirmed by participation, not by price alone.

  • On-balance volume can be read as a participation signal that either confirms or questions a price move.
  • Rate of Change can be applied across time periods to mark tendencies for market tops and bottoms.
  • Market breadth readings can show whether a price move is widely shared or concentrated in a narrow group of names.
  • A large price advance with weak breadth and weakening On-balance volume is framed as a warning that leadership is narrowing.
Entries in this reading3 entries
On-balance volume25 readingsCurrent trackRate of Change50 readingsMarket breadth120 readings

One hypothesis from three chart conditions

As an editorial framing, a technician can turn On-balance volume, Rate of Change, and Market breadth into one falsifiable hypothesis: a price move is being confirmed by participation, not just by price. The archive material describes each study and a few joint readings. It does not, by itself, define that single hypothesis.

On-balance volume can be read as a participation signal that either confirms or questions a price move. Market breadth readings can show whether a price move is widely shared or concentrated in a narrow group of names. Rate of Change can be applied across time periods to mark tendencies for market tops and bottoms.

Combining Rate of Change with ownership and psychology changes is presented as a way to judge when a market is nearer a top or a bottom.

Shorter measured trends are described as more exposed to random influence than longer ones.

When an advance is not widely shared

A large price advance with weak breadth and weakening On-balance volume is framed as a warning that leadership is narrowing.

As an editorial note, that joint reading is the clearest archive example of the confirmation question. Price can advance while participation and Market breadth fail to agree.

From markets to individual stocks

The same technical studies are described as usable from overall markets down to groups, sectors, and individual stocks when transactions are measurable.

Editorial note: the same confirmation question can be asked at each of those levels when transactions can be measured. That extension of the hypothesis is editorial.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
36 of 46 in the Rate of Change track
20011-6 pp.Next on Rate of ChangeKnow Sure Thing with stacked horizons and trendline confirmationThe market-cycle model treats short-term, intermediate, and primary trends as concurrent swings that should be aligned before a trade is taken.
All readings on this track · 46 readings
  1. 1985Constructing excess and momentum difference-curve oscillators
  2. 1988Five reading rules for smoothed indicator charts
  3. 1989Momentum overlays that speed moving-average oscillators
  4. 1990A laboratory template that constructs Rate of Change as a pane module
  5. 1991Volume-scaled rate of change as a momentum construction
  6. 1991Three-indicator market overview from tape, sentiment and rates
  7. 1991Three-component trend model with rate-of-change filters
  8. 1992A KST oscillator from a weighted rate-of-change stack
  9. 1992Four-window weighted rate-of-change composite
  10. 1992Constructing multi-span smoothed rate-of-change filters
  11. 1992Constructing a four-horizon summed rate of change
  12. 1992Constructing KST from four weighted smoothed rates of change
  13. 1992Constructing a composite from weighted smoothed rates of change
  14. 1992Three-horizon KST maturity alignment
  15. 1992Construct a bond-led dividend-to-bond-yield regime first
  16. 1992Constructing relative-strength KST from weighted rate-of-change
  17. 1993Constructing a volume oscillator from average ratios and smoothed rate of change
  18. 1994Gold as a cycle clock for commodities and yields
  19. 1994Constructing a composite from weighted, smoothed rate-of-change windows
  20. 1994Constructing gold-mining rate-of-change tripwires for Treasury bonds
  21. 1994A capacity-stress checklist across commodities, bonds, and breadth
  22. 1994Rate of change parameters for testable entries
  23. 1994Constructing rate-of-change midpoints, lookbacks and divergence
  24. 1994Lead oscillator breaks need price trendline confirmation
  25. 1994Nested averages for an annual momentum curve
  26. 1994Evaluating a Coppock-style rate of change as a bottom-regime filter
  27. 1995A weighted eleven-month Dow rate of change as one testable timing procedure
  28. 1996Named lookbacks, thresholds, and streaks for entry rules
  29. 1997A midpoint rate-of-change test for bond trend follow-through
  30. 1997Constructing a short-rate-adjusted equity momentum filter
  31. 1998Daily momentum rank-churn as a portfolio-construction problem
  32. 1999Constructing a lagged rate of change cycle system
  33. 2000A triple delay line then a one-bar elliptic oscillator
  34. 2001Confirming rate of change divergences with price
  35. 2001Momentum trendline breaks need price confirmation
  36. 2001Market breadth, On-balance volume, and Rate of Change as a combined timing framework
  37. 2001Know Sure Thing with stacked horizons and trendline confirmation
  38. 2003Constructing a mechanical system from a rate of change condition
  39. 2003Constructing momentum from two closes and spotting divergence
  40. 2003Formula choice tilts which momentum mismatches count as divergences
  41. 2004RSI and momentum agreement as an asymmetric filter
  42. 2005Constructing price-normalized moving-slope hybrids
  43. 2005Unsigned speed gates on a fixed average-cross pair
  44. 2007Rebuilding rate of change as a path-weighted oscillator
  45. 2008Construct Special K so short-horizon signals stay inside the primary trend
  46. 2013Restore volume balance before adding another price-time indicator
By fieldMarket breadth101 readingsBy year200176 readings
All 50 readings tagged Rate of Change
Also on Rate of Change5 readings
2013Restore volume balance before adding another price-time indicatorOn-balance volume1996Constructing volume-split and advance-decline breadth signalsOn-balance volume1988Constructing volume-confirmation overlays on OHLC spreadsheet chartsOn-balance volume1989Constructing a yield-curve volume-breadth compositeOn-balance volume1990Constructing a signed-range negative volume lineOn-balance volume