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Registered User
Joined: 10/17/2004
Posts: 9
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I have been told that the Breadth A/D is calculated by taking the 10 day simple moving average of the number of advancing issues and dividing that number by the sum of the total amount of advancing issues and the total amount of declingint issues. The neutral point of the Breadth A/D is .500.
Is there a way to plot the Breadth A/D in TC200
Thank you,
Dick Smith
(email removed by Moderator)
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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energized (great name, by the way),
Take a look at ticker T2102 in your TeleChart. Here is the explanation of it from our help file:
This index was developed by Norman Fosback. It is simply the absolute value of the number of advancing issues minus the number of declining issues. For example, if the number of advancing issues is 1200 and the number of declining issues is 600, the Absolute Breadth Index equals 600. If the number of advancing issues is 400, and the number of declining issues is 900, the Absolute Breadth Index equals 500. Remember, the sign is ignored in the calculation of an absolute number.
For charting purposes, we take the daily Absolute Breadth value (calculated as described in the previous paragraph) and publish it as a percentage increase or decrease from the previous day’s value. For example, let’s say yesterday’s Absolute Breadth value was 1000 and the chart shows a value of 31. Now, today’s calculated value comes in at 960:960 / 1000 = .96, which is a 4% decrease from the previous day, so today’s reading would be 27, a 4% decrease.
The theory behind the Index is that when the absolute difference between the number of advancing and declining stocks is high, you are more likely to be near a market bottom than a top since a selling climax, with most stocks participating, often occurs near a market bottom. On the other hand, a low Absolute Breadth Index reading is more likely to signify the slow topping activity that frequently occurs at a market peak.
- Craig
Here to Help!
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Registered User
Joined: 1/1/2005
Posts: 2,645
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If you replace the SMA10 by an EMA10 and multiply by 100, the indicator described by Dick Smith above becomes T2103 Zweig Breadth Thrust.
No one seems to know what the TeleChart version of Absolute Breadth Index, T2101, described above actually is.
Thanks,
Jim Murphy
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Registered User
Joined: 1/1/2005
Posts: 2,645
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Dick,
Since I explained how T2103 Zweig Breadth Thrust is related to the indicator you described, I will show how to obtain a plot of the indicator.
Please bring up T2103 and construct the Custom Indicator:
Check: "Plot using price scale"
PCF: (11*AVGC10.0-9*AVGC10.1)/2
As an alternative:
Check: "Plot using price scale"
Smoothing Average: 10 Simple
PCF: (11*C0-9*C1)/2
The scaling will be 100 times that of the indicator you described. For example, when your indicator is 0.50 the plotted indicator is 50.
As far as I know, the data base used is the same as that for T2100. I have never seen evidence to the contrary. In "Help Topics", the data base for T2100 is described as NYSE common stocks.
Thanks,
Jim Murphy
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