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…