Breadth indicators are measuring the overall strength of a price action or an existing trend by analyzing the proportion of the overall stocks or volume that are participating in the market's up or down move. Rising stocks should be getting the most of volume in a healthy strong market. The same is true with the amount of advancing stocks compared to declining stocks.
Positive market breadth occurs when more stocks are moving higher than are moving lower, and it is used to suggest that the condition of the market is healthy. Divergences between the stock market and/or existing trends and breadth indicators should be monitored closely by market technicians as a trend reversal could be ahead!
WallStreetCourier.com offers the following breadth indicators: