Market Breadth Indicators: An Overview
A category of indicators that measure how many individual assets are participating in a market move, rather than looking at one asset's price alone.
Market breadth indicators measure how many individual assets within a broader market are actually participating in a given move — advancing versus declining, making new highs versus new lows — rather than looking at a single asset's or a single index's price in isolation.
Broad participation across many assets is generally considered a healthier, more durable kind of market-wide move than one driven narrowly by only a handful of large assets, which breadth indicators are specifically designed to reveal. See Kaavon's dedicated Market Breadth Indicators overview article for how the specific tools in this family (including McClellan Oscillator, TRIN, and the High-Low Index) each measure this.
Examples
- A market-wide rally driven by broad participation across many assets is generally considered more durable than one concentrated in just a few large assets.
- Market breadth indicators look at how many assets are participating in a move, a structurally different question from any single asset's own price indicators.
Learn more
Market Breadth Indicators: An Overview
Read the article
McClellan Oscillator and Summation Index
Read the McClellan Oscillator and Summation Index glossary definition
TRIN (Arms Index)
Read the TRIN (Arms Index) glossary definition
High-Low Index
Read the High-Low Index glossary definition