Breadth Thrust

Breadth thrust seeks to anticipate later trend-following buy signals by detecting an early internal market surge. Breadth thrust measures broad market participation rather than only index prices. A breadth thrust reflects a sudden change in demand across many stocks rather than strength in a few large index components. Breadth thrust can be calculated using advance-decline ratios, moving averages, or advancing versus declining volume. Breadth thrust is used to create additional buy signals near major market bottoms or deep correction lows. Breadth thrust is useful for buy signals after major weakness but not for identifying market tops.