Breadthratio — Indicators and Strategies

Market Internals & Info This script provides various information on Market Internals and other related info. It was a part of the Daily Levels script but that script was getting very large so I decided to separate this piece of it into its own indicator. I plan on adding some additional features in the near future so stay tuned for those! The script provides customizability to show certain market internals, tickers, and even Market Profile TPO periods. Here is a summary of each setting: NASDAQ and NYSE Breadth Ratio - Ratio between Up Volume and Down Volume for NASDAQ and NYSE markets. This can help inform about the type of volume flowing in and out of these exchanges. Advance/Decline Line (ADL) The ADL focuses specifically on the number of advancing and declining stocks within an index, without considering their trading volume. Here's how the ADL works: It tracks the daily difference between the number of stocks that are up in price (advancing) and the number of stocks that are down in price (declining) within a particular index. The ADL is a cumulative measure, meaning each day's difference is added to the previous day's total. If there are more advancing stocks, the ADL goes up. If there are more declining stocks, the ADL goes down. By analyzing the ADL, investors can get a sense of how many stocks are participating in a market move. Here's what the ADL can tell you: Confirmation of Trends: When the ADL moves in the same direction as the underlying index (e.g., ADL rising with a rising index), it suggests broad participation in the trend and potentially stronger momentum. Divergence: If the ADL diverges from the index (e.g., ADL falling while the index is rising), it can be a warning sign. This suggests that fewer stocks are participating in the rally, which could indicate a weakening trend. Keep in mind: The ADL is a backward-looking indicator, reflecting past market activity. It's often used in conjunction with other technical indicators for a more complete picture. TRIN Arms Index The TRIN index, also called the Arms Index or Short-Term Trading Index, is a technical analysis tool used in the stock market to gauge market breadth and sentiment. It essentially compares the number of advancing stocks (gaining in price) to declining stocks (losing price) along with their trading volume. Here's how to interpret the TRIN: High TRIN (above 1.0): This indicates a weak market where declining stocks and their volume are dominating the market. It can be a sign of a potential downward trend. Low TRIN (below 1.0): This suggests a strong market where advancing stocks and their volume are in control. It can be a sign of a potential upward trend. TRIN around 1.0: This represents a more balanced market, where it's difficult to say which direction the market might be headed. Important points to remember about TRIN: It's a short-term indicator, primarily used for intraday trading decisions. It should be used in conjunction with other technical indicators for a more comprehensive market analysis. High or low TRIN readings don't guarantee future price movements. VIX/VXN VIX and VXN are both indexes created by the Chicago Board Options Exchange (CBOE) to measure market volatility. They differ based on the underlying index they track: VIX (Cboe Volatility Index): This is the more well-known index and is considered the "fear gauge" of the stock market. It reflects the market's expectation of volatility in the S&P 500 index over the next 30 days. VXN (Cboe Nasdaq Volatility Index): This is a counterpart to the VIX, but instead gauges volatility expectations for the Nasdaq 100 index over the coming 30 days. The tech-heavy Nasdaq can sometimes diverge from the broader market represented by the S&P 500, hence the need for a separate volatility measure. Both VIX and VXN are calculated based on the implied volatilities of options contracts listed on their respective indexes. Here's a general interpretation: High VIX/VXN: Indicates a high level of fear or uncertainty in the market, suggesting investors expect significant price fluctuations in the near future. Low VIX/VXN: Suggests a more complacent market with lower expectations of volatility. Important points to remember about VIX and VXN: They are forward-looking indicators, reflecting market sentiment about future volatility, not necessarily current market conditions. High VIX/VXN readings don't guarantee a market crash, and low readings don't guarantee smooth sailing. These indexes are often used by investors to make decisions about portfolio allocation and hedging strategies. Inside/Outside Day This provides a quick indication of it we are still trading inside or outside of yesterdays range and will show "Inside Day" or "Outside Day" based upon todays range vs. yesterday's range. Custom Ticker Choices Ability to add up to 5 other tickers that can be tracked within the table Show Market Profile TPO This only shows on timeframes less than 30m. It will show both the current TPO period and the remaining time within that period. Table Customization Provided drop downs to change the text size and also the location of the table.

Breadth - Advance Decline Thrust Breadth indicator. Takes NYSE/NQ/US up volume and divides it by the total volume to get an advance decline thrust ratio which can be used as a measure of market breadth. Also has the option to look at the cumulative breadth over the trailing x days. Also has the option to display as cumulative net up volume which will show lower values than advance decline thrust on days where there were large buy/sell imbalances, but the total day's volume was low.

4C NYSE Market Breadth Ratio The NYSE Market Breadth Ratio is considered by some to be the “king” of market internals. It lets you know instantly how strong current buying or selling pressure is in the broad market, to eliminate guessing or opinion. This indicator plots the Market Breadth Ratio values for the NYSE and the NASD exchanges in real time. It also plots the NYSE Market Breadth Ratio in a histogram plot for visual reference. The indicator dynamically changes colors between green and red depending on whether breadth is currently positive or negative. This indicator divides the 'Up-Volume' ("UVOL") by 'Down-Volume' ("DVOL"), for each exchange. It can be added to any chart, but is incredibly useful when added to other sources of market internals like the NYSE Advancers/Decliners Difference (ticker ADD) or with the NYSE UVOL / DVOL Difference (ticker VOLD ). Credit goes to author=@auron9000 as the bulk of this code was from their Breadth Ratio Bubbles indicator. ---> The changes made to their indicator include: bug fixes where the values werent properly updating; fixed indicator to be a separate plot (not chart overlay), and added the histogram plot.

VOLD-MarketBreadth-Ratio This script provides NASDAQ and NYSE Up Volume (volume in rising stocks) and Down Volume (volume in falling stocks) ratio. Up Volume is higher than Down Volume, then you would see green label with ratio e.g 3.5:1. This means Up Volume is 3.5 times higher than Down Volume - Positive Market Breadth. If Down Volume is higher than Up Volume, then you would see red label with ratio e.g -4.5:1. This means Down Volume is 4.5 times higher than Up Volume. For example, ratio is 1:1, then it is considered Market Breadth is Neutral. PS: Currently TradingView provides only NASDAQ Composite Market volume data. I have requested them to provide Primary NASDAQ volume data. If they respond with new ticket for primary NQ data, I will update the script and publish the updated version. So if you have got similar table on ToS, you would see minor difference in NQ ratio.