BREADTH INDICATOR

Mathematical formula computing the amount of participation in the stock market movement. Using the advancing and declining issues, it evaluates the number of stocks that increase and decrease, in terms of price, as well as the number of investors place their order for these stocks. The indicator shows whether the overall market sentiment is bullish or bearish. Investors can also use this to determine the behavior of a specific industry or sector, as well as to evaluate the magnitude or a surge or threat.