Market breadth indicators, explained
Breadth indicators look under the hood of an index. They measure how many stocks are advancing versus declining, revealing whether a Nifty rally is broad and healthy or driven by a handful of heavyweights and quietly weakening.
What are market breadth indicators? Market breadth indicators measure participation across an index — how many constituent stocks are rising versus falling. The Advance/Decline Line, McClellan Oscillator and TRIN (Arms Index) are the core tools, used to confirm or warn against index-level trends.
Advance/Decline Line A/D Line
BreadthThe Advance/Decline Line is a cumulative breadth indicator that adds the daily difference between the number of advancing and declining stocks, showi…
McClellan Oscillator
BreadthThe McClellan Oscillator is a breadth-momentum indicator equal to the difference between a 19-day and a 39-day exponential average of net advancing s…
TRIN (Arms Index) TRIN
BreadthTRIN, or the Arms Index, is a breadth indicator that divides the advance/decline ratio by the advancing/declining volume ratio, measuring whether vol…
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Frequently asked questions
What are market breadth indicators?
Market breadth indicators measure participation across an index — how many constituent stocks are rising versus falling. The Advance/Decline Line, McClellan Oscillator and TRIN (Arms Index) are the core tools, used to confirm or warn against index-level trends.
Which breadth indicator is best for Nifty?
There is no single best breadth indicator — each has strengths in different conditions. Most Indian traders start with the most popular in this family and combine it with an indicator from another category for confirmation. Explore each below with its formula, settings and Nifty example.