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  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Absolute Breadth Index Definition</h2><p>The <strong>absolute breadth index (ABI)</strong> measures the amount of <a rel=\"nofollow\" title=\"volatility\" href=\"/options/implied-volatility.html\">volatility</a> on the <a title=\"New York Stock Exchange\" rel=\"nofollow\" href=\"/stocks/who-started-the-nyse.html\">New York Stock exchange</a>. The indicator is truly a momentum indicator since it only tracks the movement of the issues on the exchange and not their direction. The absolute breadth index was created by Norman G. Fosback and discussed in detail in his book Stock Market Logic. The overall purpose of the indicator is to determine when the market is most volatile, thus providing the greatest opportunity for larger profits due to increased volatility. During periods of low ABI readings, traders will want to fade securities at their highs or lows, or simply stay in cash until better opportunities arise. In Fosback\'s book he discussed that when the ABI reading for the 10-week <a href=\"/technical-analysis/simple-moving-average.html\">moving average</a> was above 40 percent, it suggested a bullish market. While readings below 15 percent suggested a bear market. Now that there are far greater issues traded on the NYSE, these hard numbers for gauging primary trends are no longer valid. You as a trader will want to look at the current reading relative to recent levels of the ABI <a title=\"technical indicator\" href=\"/technical-analysis/technical-indicators\">technical indicator</a> to gauge whether or not the trend is bullish or bearish in nature. The absolute breadth index is calculated by taking the absolute vale of the difference of advancing issues by the number of declining issues.</p><h2>Absolute Breadth Index Formula</h2><p><span class=\"inline inline-none\"><img src=\"http://www.mysmp.com/sites/default/files/images/absolute-breadth-index.png\" alt=\"\" title=\"\" class=\"image image-_original \" width=\"437\" height=\"71\" /></span></p><h2>Absolute Breadth Index Charting Example</h2><span class=\"inline inline-none\"><img src=\"http://www.mysmp.com/sites/default/files/images/absolute-breadth-index-chart.png\" alt=\"\" title=\"\" class=\"image image-preview \" width=\"510\" height=\"269\" /></span><div class=\"image-clear\"></div>', created = 1526901407, expire = 1526987807, headers = '', serialized = 0 WHERE cid = '1:ed4c1a4bff0e7fd4475c9d7e2e292439' in /var/www/html/mysmp/includes/cache.inc on line 109.
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Absolute Breadth Index (ABI) - Momentum Indicator

Absolute Breadth Index Definition

The absolute breadth index (ABI) measures the amount of volatility on the New York Stock exchange. The indicator is truly a momentum indicator since it only tracks the movement of the issues on the exchange and not their direction. The absolute breadth index was created by Norman G. Fosback and discussed in detail in his book Stock Market Logic. The overall purpose of the indicator is to determine when the market is most volatile, thus providing the greatest opportunity for larger profits due to increased volatility. During periods of low ABI readings, traders will want to fade securities at their highs or lows, or simply stay in cash until better opportunities arise. In Fosback's book he discussed that when the ABI reading for the 10-week moving average was above 40 percent, it suggested a bullish market. While readings below 15 percent suggested a bear market. Now that there are far greater issues traded on the NYSE, these hard numbers for gauging primary trends are no longer valid. You as a trader will want to look at the current reading relative to recent levels of the ABI technical indicator to gauge whether or not the trend is bullish or bearish in nature. The absolute breadth index is calculated by taking the absolute vale of the difference of advancing issues by the number of declining issues.

Absolute Breadth Index Formula

Absolute Breadth Index Charting Example

Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

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