Get started

Breadth Indicators

DJI Hits Weekly Support: What's Next? - Market Breadth AnalysisThe DJI has recently declined as previously predicted and has now completed a CHoCH (Change of Character), signaling a bearish trend. The index has reached a significant weekly support zone around the 42,500 level (🟩 marked by the green box). So, what’s next? 🤔 Looking at the H1 chart, we notice some interesting market breadth outlook: - US30 Market Breadth EMA20 Indicator: The EMA histogram has shifted from 🟩 green to 🟨 yellow, indicating an increasing number of stocks with strong bullish momentum. However, the height of the histogram (yellow) bars 📉 is decreasing, suggesting that the overall number of stocks with strong bullish momentum is also diminishing. - Market Breadth MACD Indicator: The 🔴 red line (representing strongly bearish stocks) is clearly declining, showing a reduction in the number of stocks with strong downward momentum. Meanwhile, the 🔵 blue line is increasing significantly, suggesting that many stocks are reversing upward even within a bearish momentum. The 🟢 green line, which represents strongly bullish stocks, is climbing but still lacks the strength to signal a decisive shift. A significant breakout would require the green line to rise further, confirming a stronger bullish momentum across a larger number of stocks. - Market Breadth EMA Alignment: The 🔴 red line crossed above the 🟢 green line quite some time ago and continues to widen. This suggests that a bullish crossover (green crossing above red) is unlikely in the near term. A confirmed bullish signal would require the green line to overtake the red line again. - Summary: While there are early signs of potential reversal, the bullish momentum is not yet strong enough to suggest a significant upward breakout. It’s crucial to monitor whether the 🟢 green line in the MACD and US30 Market Breadth EMA20 indicators can rise substantially, indicating a larger number of stocks gaining solid bullish momentum. ⚠️ Until then, the uptrend remains weak, and caution is warranted. While DJI might retest previous highs, breaking past those highs to form new all-time highs seems challenging at this point. Strategy: Given the current conditions, it might be more advantageous to look for shorting opportunities. 📉
DJ:DJIEducation
by Investic_analytics
Holy Cow, A lot of Big Option Purchases Coming In!First price target for January is $90 and it could happen soon. Be careful as spike downs tend to have a lower low formed prior to reversal, this would create bullish divergence on RSI, MACD and more which is another to double down. Options chain for calls expiring 1/10/2025 show the $90 strike has 1,522 calls bought on Friday at .87 per contract. Not huge, bot overall the bias on NVO is buy the dip. long term target of well over 100
NYSE:NVOLong
by LeapTrades
1
How to Identify Market Downtrends Without Fundamentals🔍 A Fundamental Perspective On December 18, 2024, the Federal Reserve cut interest rates by 25 basis points, bringing them to a range of 4.25%–4.5%. However, their guidance suggested a slower pace of rate cuts in 2025, with projections of only two reductions instead of four as previously expected. This cautious stance, driven by lingering inflation concerns and a resilient labor market, triggered a sharp market sell-off. The Dow Jones Industrial Average (DJIA) plummeted over 1,100 points, recording its steepest single-day drop since 1974. 🔍 Market Breadth: A Technical Perspective If you’re not tracking fundamental events, Market Breadth indicators can offer valuable insights into market trends and the health of the index. 1️⃣ US30 Market Breadth EMA 20 The histogram bars in yellow reflect the number range of stocks in the DJIA with strong uptrends. Recently, the height of these bars has been steadily declining, signaling that fewer stocks are maintaining bullish trends. 2️⃣ Market Breadth MACD Conversely, the red line of the MACD indicator, which represents stocks in a strong downtrend, has been rising. This divergence indicates that bearish momentum is building across the market. 3️⃣ Market Breadth EMA Alignment The red line crossing above the green line in this indicator confirms a strong downtrend, providing additional evidence of bearish dominance. 📈 Price Action Analysis The price has broken below the ascending channel, which further supports the bearish case. Combining this with signals from the Market Breadth indicators strengthens the probability of a sustained downtrend in the DJIA. ✅ Key Takeaway By analyzing Market Breadth and combining technical indicators, you can gauge the market's strength even if you're not following the fundamentals. As DJIA breaks below critical technical levels, traders should exercise caution and watch for further confirmation of bearish trends.
TVC:DJIEducation
by Investic_analytics
Future Outlook with StochRSI and OBV Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- I used TradingView's index chart to see the overall flow of BTC. -------------------------------------- (BTCUSD 1M chart) OBV is showing an upward breakout of the High Line. Accordingly, we should look at how the High Line is expressed when the candle of the next month is created. The StochRSI indicator has risen above 50 points, and has changed to a state where StochRSI > StochRSI EMA. Accordingly, we should look at whether it will maintain the current state and show an upward trend. Looking at the movement of the indicators on the 1M chart, I think it is highly likely that the uptrend will continue. - (1W chart) There is some ambiguity in analyzing BTC due to the movement of the 1W chart. The StochRSI indicator is maintained at the 100 point, and the StochRSI EMA indicator is approaching the 100 point. As of now, the StochRSI EMA has never touched the 100 point. Accordingly, I think the pressure for a decline is increasing as time goes by. The OBV indicator has risen above the high line. Accordingly, if a high line is created next week, we should see if it enters the high line. If so, BTC is expected to show a downward trend. However, the StochRSI and OBV indicators cannot tell the extent of the decline. Therefore, if the decline begins, there is a possibility that the MS-Signal (M-Signal on the 1W chart) indicator will be touched. - (1D chart) BW(100) indicator is created at 101197.25. Accordingly, in order to continue the uptrend, the price must rise above 101197.25 to maintain it. The OBV indicator is near the high line. Accordingly, when it rises above 101197.25, we need to see if the OBV indicator breaks through the high line upward. The StochRSI indicator is below 50, and StochRSI < StochRSI EMA. Accordingly, we need to see if it rises above 50 points and switches to a state where StochRSI > StochRSI EMA and is maintained. If not, and BTC falls below 95961.82, there is a possibility that it will touch the M-Signal indicator on the 1W chart. At this time, if the HA-Low indicator or BW(0) indicator is generated, then the important issue is whether there is support near that indicator. ------------------------------------ (BTCUSDT 1D chart) After the volatility period around December 3, it is important to see whether the price can be maintained near the important support and resistance area of ​​95904.28-98892.0 until the next volatility period. Therefore, the point to watch is whether it can reset the StochRSI indicator on the 1W chart while moving sideways unless it falls below 95904.28. The key point is what I said on the BTCUSDT 1D chart. If it rises above the BW(100) indicator point of 101109.59 and maintains the price, and if the StochRSI indicator rises above the 50 point and changes to the state of StochRSI > StochRSI EMA, there is a possibility that it will rise further. However, as I mentioned earlier on the 1W chart, the StochRSI EMA indicator on the 1W chart is approaching the 100 point, so it will eventually show a downward trend. As explained in the big picture below, the coin market is expected to maintain an upward trend until the end of 2025. Therefore, I think that even if there is a short-term decline or a downward trend this time, it will eventually rise above the current price. - Thank you for reading to the end. I hope you have a successful transaction. -------------------------------------------------- - ​​Big picture I used TradingView's INDEX chart to check the entire range of BTC. (BTCUSD 12M chart) Looking at the big picture, it seems to have been in an upward trend since 2015. In other words, it is a pattern that maintains a 3-year upward trend and faces a 1-year downward trend. Accordingly, the upward trend is expected to continue until 2025. - (LOG chart) Looking at the LOG chart, you can see that the upward trend is decreasing. Accordingly, the 46K-48K range is expected to be a very important support and resistance range from a long-term perspective. Therefore, I expect that we will not see prices below 44K-48K in the future. - The Fibonacci ratio on the left is the Fibonacci ratio of the uptrend that started in 2015. That is, the Fibonacci ratio of the first wave of the uptrend. The Fibonacci ratio on the right is the Fibonacci ratio of the uptrend that started in 2019. Therefore, this Fibonacci ratio is expected to be used until 2026. - No matter what anyone says, the chart has already been created and is already moving. It is up to you how to view and respond to it. Since there is no support or resistance point when the ATH is updated, the Fibonacci ratio can be appropriately utilized. However, although the Fibonacci ratio is useful for chart analysis, it is ambiguous to use it as a support and resistance role. The reason is that the user must directly select the important selection points required to create the Fibonacci. Therefore, it can be useful for chart analysis because it is expressed differently depending on how the user specifies the selection point, but it can be seen as ambiguous for use in trading strategies. 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (when overshooting) 4th: 134018.28 151166.97-157451.83 (when overshooting) 5th: 178910.15 -----------------
by readCrypto
US30 Bullish Swing Setup Using Market Breadth EMA AlignmentKey Observations ✅ Support at Key Levels: The price has approached the lower Bollinger Band (~44,579), a zone that historically attracts buyers. This area often signals oversold conditions and potential for a reversal. ✅ Market Breadth Confirmation: Our proprietary Market Breadth EMA Alignment tool shows a stable bullish breadth value of 10 stocks, with bearish breadth limited to 5 stocks, suggesting that bullish momentum may resume soon. ✅ Candlestick Support Formation: Recent candlesticks near the lower Bollinger Band indicate rejection of further downside, forming a potential support base for a short-term reversal. Swing Trade Setup Entry Plan: Aggressive Entry: Enter near the lower Bollinger Band (~44,579) with tight risk management. Conservative Entry: Enter long on a confirmed close above the mid-Bollinger Band (~44,634) for additional confirmation. Profit Targets: Target 1 (T1): Mid-Bollinger Band (~44,634). Target 2 (T2): Upper Bollinger Band (~45,034). Indicator Insight This analysis uses the Market Breadth EMA Alignment tool to quantify bullish and bearish momentum across US30 components. By observing the alignment of bullish versus bearish stocks, traders gain additional insight into market sentiment. Risk Disclaimer: ⚠️ This publication is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always trade responsibly and use appropriate risk management techniques. Access to the Script: This idea incorporates an invite-only script. If you’d like to learn more about the script’s functionality or request access, please message me directly.
TVC:DJILong
by Investic_analytics
US30 Bearish Reversal Signals Looming?The Dow Jones Industrial Average (US30) may be setting up for a potential pullback, as technical indicators signal weakening momentum. Key Observations: - The price has approached the upper Bollinger Band resistance (marked by circles in the chart). Historically, such instances often coincide with price corrections or consolidation phases. - Recent candles indicate hesitation, with bearish pressure emerging near critical resistance levels. Indicator Confirmation: - The Market Breadth EMA20 has dropped below 20, reflecting reduced market participation and signaling potential waning bullish momentum. - The Dow's failure to sustain above the upper Bollinger Band, coupled with rejection candles, strengthens the case for a reversal. Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage risks effectively.
BLACKBULL:US30Short
by Investic_analytics
Avoid Betting at the Peak? Here's How Market Breadth HelpWe are Investic Lab, a quant-focused lab dedicated to designing tools that provide clients with actionable insights from quantitative data on global markets. Our tools offer a unique perspective by analyzing market data based on facts—not speculative price predictions. ⚠️ Disclaimer: This post is for informational purposes only and does not constitute financial advice. Key Takeaways: ✅ Quantitative Insights Over Predictions: Our tools explore the concept of "Peaks" using data-driven approaches, offering a distinct advantage compared to traditional predictive models. ✅ Why Market Breadth and DJIA (US30)? The Dow Jones Industrial Average (US30) serves as a leading indicator for our analysis. By examining market breadth, we aim to identify potential short-term bullish weaknesses. Market Breadth Analysis: Understanding the Red-to-Yellow Zone Transition 📊 Timeframe: Daily (TF Day) The transition from the Red Zone to the Yellow Zone signals a shift in market dynamics. This change represents 7 to 24 stocks moving above the 20-day EMA, indicating moderate market strength and the emergence of a positive trend. 🔍 Not Bearish, but Weakening Bullish Momentum: While this transition does not imply bearish conditions, it often reflects short-term bullish weakness. 🎯 Opportunity at or Near the Peak: We suggest adjusting your Risk/Reward (R/R) to 3:1 to take advantage of this phase, which may represent the peak or near-peak conditions for the short term. 📊 Timeframe: 15 Minutes (TF m15) For aggressive traders monitoring intraday price movements, we recommend incorporating Bollinger Bands into your strategy. Focus on the average line of the Bollinger Bands, which can serve as a reliable reference for trade setups. ✅ Use the Average Line for Entry Decisions: If you're experienced with Bollinger Bands, rely on the average line as your primary guide. Either, If you’re unsure about Bollinger Band parameters, substitute the 39-period Exponential Moving Average (EMA) line for a clear trend-following signal. Risk Management Reminder: ⚠️ Trading Against the Trend: This strategy goes against the prevailing bullish market trend, which inherently carries more risk. If the price doesn’t move as expected, cut your losses and wait for the next trade setup. 💡 Opportunities Always Await: Missed trades are part of the process. Stay disciplined—there will always be new opportunities ahead!
BLACKBULL:US30Education
by Investic_analytics
2
Dow Jones (US30) Market Breadth EMA20 AnalysisThe US30 Market Breadth Indicator EMA20 is an essential tool for assessing the participation of DJIA stocks in the current trend. It measures how many stocks are trading above their 20-day EMA, offering valuable insight into market breadth. Current Market Breadth Overview: 🔴 RED Zone: The indicator currently shows 25-30 stocks above their 20-day EMA, signaling strong bullish breadth with most stocks participating in the upward trend. 📈 Over the past several bars, the histogram transitioned from yellow to red, indicating increasing bullish momentum as more stocks moved above their 20-day EMA. Price Action & Breadth Convergence: The US30 has been in a clear uptrend, recovering from lows around 42,846 and reaching a high of 44,807. Higher highs and higher lows support the bullish narrative, while the red histogram confirms broad participation across the DJIA stocks. This alignment suggests the rally is well-supported by market breadth. How to Apply Market Breadth to Your Trading Strategy: You can use Market Breadth to enhance your trading strategies by identifying the strength of trends and spotting potential reversals. For example, when the histogram is in the red zone, it supports bullish trend-following strategies, as it indicates broad market participation. However, if the histogram transitions from red to yellow, it suggests a decrease in the number of stocks above their 20-day EMA (from 25-30 to 7-24 stocks). This shift could signal weakening momentum and serve as an early warning to tighten stop-losses, take partial profits, or prepare for a potential pullback. Integrating Market Breadth with price action allows you to fine-tune your entries and exits, improving risk management and strategy performance. Trend Outlook: 🚀 The trend remains bullish, with the red histogram and higher price levels suggesting a continuation unless breadth weakens significantly. ⚠️ A shift from red to yellow is a potential warning sign of declining momentum, indicating caution is warranted.
BLACKBULL:US30
by Investic_analytics
SPY shows signs of topping outSPY hits all time high throwing multiple signals that the rally is coming to a close Following long term trend, we see we are at same resistance as July hit before reversing declining volume as recent rally continues gives a bearish signal OBV remains flat while price hits higher highs through out September and October We should expect to see a reversal in the near future. The best move to make right now is tighten up stop losses and keeping watching for more bearish signals.
AMEX:SPYShort
by ratchet-mint
How to Use Trading Zones in CryptoHello, Skyrexians! Last two articles were the deep dive into the Awesome Oscillator and Acceleration Deceleration indicators by Bill Williams. In conjunction with the fractals and the alligator these indicators are the powerful concept in cryptocurrency trading. It can significantly boost your cryptocurrency trading strategy, crypto trading algorithm or you can implement it into trading bot. Today we will expand this concept with the trading zones - the periods on the market with the bullish or bearish superiority. Trading zones is not the popular concept in comparison to Awesome Oscillator, that's why using it can give you a huge advantage in crypto trading because even top crypto traders don't use it in their trading routine. Let's go through its concept. Before start observing the trading zones concept we have to understand what are the Awesome Oscillator and Acceleration/Deceleration. Awesome oscillator is the approximation of the market's driving force. Usually it starts moving before the price if this is an impulsive wave. During corrections it can flash the false signals. Before the driving force starts moving the acceleration changes its direction. That's why combination of these indicators is so important. What is the trading zone? As you know from AO and AC descriptions they can have 2 conditions: increasing (greed bars) and decreasing (red bars). According to this we can define 3 marker conditions: Green zone. Both AO and AC have the increasing columns. This is the strong bullish phase. Only long trades are allowed. Red zone. Both AO and AC have the decreasing columns. This is the strong bearish phase. Only short trades are allowed. Gray zone. AO and AC have the different directions. No signals can be generated by this trading zone
Education
by Skyrexio
SMH shows long term signs of troubleSMH fails to make new highs since July peak going into sideways trend. This paints a picture of a long term reversal to bear side coming Comparing OBV trend with the March and July peak, we see that OBV diverges downwards while price continues indicating reversal After severe sell off in August, we see that price trends sideways failing to make new highs The sideways trend is during a typical rough time of the year, so weakness and volatility is expected Nov and Dec normally bring in strong rallies We could be simply looking at a pullback in time as ETF takes a breather from July peak, before rallying continues. The other alternative is that this may be distribution phase of a high risk sector preparing for a huge sell off.
NASDAQ:SMH
by ratchet-mint
1
Example of Conditions for Starting Trading Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- I will publish in advance due to an external schedule tomorrow. Accordingly, I will take time to provide additional explanations on the ideas published today. ---------------------------------------- I will talk about the basis for indicating the direction of progress shown in the chart above. In order to differentiate from other people's analyses, I am trying to explain the basis for indicating the support and resistance points or sections on the chart. I think that if you understand why those points and sections were set, you will eventually be able to understand them without having to read the explanation all the way through. For this, more support and resistance points are needed. This is because we can select the volatility period by additionally drawing the trend line. However, since all of these processes are displayed on the chart, there are many complaints that the chart is messy and confusing, so we are trying to reduce them as much as possible. Therefore, there are cases where the chart is displayed in two versions. The chart below is a chart that shows many support and resistance points and draws a trend line to select the volatility period. Therefore, since the support and resistance points may be displayed differently, it is recommended that you refer to the points or sections that I have written. - The conditions for starting a transaction are simpler than they look. However, when these conditions are met, the support and resistance points drawn on the 1M, 1W, and 1D charts must be displayed. Therefore, even if the conditions for starting a transaction are met, if the support and resistance points are not displayed at the corresponding price, you cannot start a transaction. Please read this carefully and thank you. - (It would be good to see this as an example of how to find the conditions that fit you and how to utilize them.) Conditions for starting a transaction are 1. Buying time conditions - When the StochRSI indicator rises in the oversold range and maintains the state of StochRSI > StochRSI EMA - When the BW indicator forms a horizontal line at the lowest point (0) - When the OBV indicator rises below the 0 point - When the DMI indicator rises below the 0 point 2. Selling time conditions - When the StochRSI indicator falls in the overbought range and maintains the state of StochRSI < StochRSI EMA - When the BW indicator forms a horizontal line at the highest point (100) - When the OBV indicator falls above the 0 point - When the DMI indicator falls above the 0 point When the above conditions are met, check whether there is support at the support and resistance points drawn near the price. Confirmation is used to proceed with the transaction. The current price position is 60672.0-61099.25. Therefore, you can proceed with the transaction depending on whether there is support in this section. Since it is currently falling below 60672.0, there is nothing you can do in spot trading other than cutting losses. In futures trading, you can enter with a sell (SHORT) position. - It is rare for all the conditions for starting a transaction mentioned above to be met. Therefore, it is recommended to basically check whether the BW indicator forms a horizontal line at the lowest point (0) or highest point (100), and then proceed with the transaction by checking the movement of the StochRSI indicator. Also, it is recommended to select a split sell section to make a profit by calculating the fluctuation range while checking the strength of the rise or fall with OBV and DMI. - In summary of the above, Since the StochRSI indicator has not yet risen from the oversold zone and StochRSI < StochRSI EMA, it is recommended to check whether a reversal is occurring. Also, you should check whether the BW indicator has fallen to the lowest point (0) and formed a horizontal line. If the OBV and DMI indicators rise below the 0 point without meeting these conditions, you should proceed with an aggressive purchase (a transaction that requires a quick response similar to scalping or day trading). If you do not proceed with an aggressive purchase, you should wait. - It is not a good idea to enter a current sell (SHORT) position in futures trading. However, if you proceed with an aggressive transaction (scalping or day trading), you can start trading. The reason why it is not a good condition for trading is because the price is located in the 1. purchase timing condition section among the conditions for starting a transaction mentioned above. Therefore, the profit is small or you may even suffer a loss. - If you are not currently trading, I think the section where you should trade is when it rises around 61K. Before that, it is highly likely that you will not be able to purchase because it seems like it will fall further. I think this point, or the section where you actually trade, is the psychological volume profile section. This psychological volume profile section is the section where psychology applies that you must trade even now. Since this point is ultimately a low or high point, it is a section where you are likely to incur losses if you purchase. The 61K section that I mentioned earlier is a section where it is highly likely to be a low point, so it is a section where you are likely to incur losses if you cut your loss or enter a sell (SHORT) position. - If it shows resistance near 60672.0, there is a possibility that a sharp decline will occur momentarily and touch 59K and then rise. This phenomenon can be a fake or a sweep movement, so you need to be careful. In order to avoid losses from this phenomenon, auxiliary indicators are necessary. Since auxiliary indicators are lagging, they are unlikely to show large movements in sudden price fluctuations. - What I am talking about is not a method of chart analysis, but an example of how to set a standard for trading. Therefore, I hope you do not misunderstand the above as about chart analysis. Since chart analysis and trading are different, what you see on the chart is also different. In order to complement this difference, what is needed is the support and resistance points drawn on the 1M, 1W, and 1D charts. Since charts without support and resistance points are likely to be for chart analysis, there is no need to try to find a trading point on these charts. - Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that the real uptrend will start after rising above 29K. The section expected to be touched in the next bull market is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 134018.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points where resistance is likely to be encountered in the future. We need to see if we can break through these points. We need to see the movement when we touch this section because I think we can create a new trend in the overshooting section. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start by creating a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
Education
by readCrypto