stock market tips
Technical analysts are familiar with breadth indicators. This is a class of indicators designed to measure how broad the participation in a price move is. The general idea behind breadth indicators is that a healthy trend will have broad participation. In a bull market, for example, most stocks should be in uptrend's. This is based on the theory that a market with just narrow leadership is likely to reverse. This was seen in 2000 when just a few stocks were moving higher. These stocks carried a great deal of weight in the indexes and pushed the indexes up. Breadth warned of a problem and the bear market was a problem. A popular breadth indicator is the advance-decline line which is calculated by subtracting the number of stocks declining every day from the number of stocks advancing. A/D line = advancing issues – declining issues Every day, technicians complete this simple calculation and chart the result, adding today’s result to the data. Generally, we see a