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breadth of market theory

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Financial Dictionary

Breadth of Market Theory

A technical analysis theory that predicts the strength of the market according to the number of stocks that advance or decline in a particular trading day.

Investopedia Commentary

The breadth of market indicator is used to gauge the number of stocks advancing and declining for the day. If the breadth indicator is strong, this theory predicts that the market will be rising and vice versa.

Related Links

Discovering the Absolute-Breadth Index and the Ulcer Index
Market Breadth: A Directory of Internal Indicators

See also: Advance/Decline Line, Breadth Indicator, Technical Analysis

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