Breadth Thrust Indicator Definition and Charting Example

Breadth Thrust Indicator Definition

The breadth thrust indicator is a momentum indicator developed by Dr. Martin Zweig. The indicator is best used for identifying major bull markets. The indicator is calculated by using moving averages for the advancing and declining issues in the market to gauge market momentum. To qualify as a breadth thrust, the indicator has to rise from below 41.5 percent to above 61.5 percent. Between 1945 and 2000, there have been 14 breadth thrusts, with an average gain of 24.6 percent. The average time from low to high for this price move is approximately 11 months. The breadth thrust indicator is calculated with the following formula:

Breadth ThrustBreadth Thrust

Breadth Thrust - Charting Example

 


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