OPEN-SOURCE SCRIPT
R% Sector Stocks > 20MA
The % of sector stocks > 20MA is a bread indicator for the major US market sectors. This gives an idea of who the inner market breadth is sitting rather than looking at a whole of market breadth indicator like the Advance Decline Line(ADL).
Best used with:
The % of stocks > 50MA
The % of stocks > 200MA
When using all 3 indicators you can map breadth changes within the market sectors to help identify and signal potential rotation or capitulation.
Readings:
Above 70 - Overbought market, high correction / rotation risk. Euphoria/blow off top
Between 40-70 is a healthy trending market
Below 20 - Oversold market, high risk of correction / rotation risk Capitulation/blow off bottom
Best used with:
The % of stocks > 50MA
The % of stocks > 200MA
When using all 3 indicators you can map breadth changes within the market sectors to help identify and signal potential rotation or capitulation.
Readings:
Above 70 - Overbought market, high correction / rotation risk. Euphoria/blow off top
Between 40-70 is a healthy trending market
Below 20 - Oversold market, high risk of correction / rotation risk Capitulation/blow off bottom
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.