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| | The Percentage of Stocks Above the 200-day Moving Average is a market breadth indicator that measures the percentage of stocks in an index trading above their 200-day moving average, a key long-term trend line. Traders use this indicator to assess the overall strength or weakness of the market. A high percentage of stocks (above 70%) are above their 200-day moving average, signals broad market strength, suggesting a bullish trend. Conversely, if the percentage is low (below 30%), it indicates market weakness and a bearish trend. Traders may also use the indicator to identify overbought or oversold conditions. A very high percentage (e.g., above 80%) may suggest the market is overbought and due for a pullback. In contrast, a very low percentage (e.g., below 20%) could indicate oversold conditions, hinting at a potential rally. Additionally, divergences between the indicator and the market index can signal weakening market internals, providing a warning of potential reversals. Overall, the % Above SMA(200) helps traders gauge market sentiment and time their entries and exits. |
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Enhance your market analysis with premium access:
Real-time % Above 200MA charts with no delay
Access to additional broad market indices, including the NYSE Composite, Nasdaq Composite, Russell 1000, Russell 2000, Russell 3000, Russell Micro Cap, and FTSE All Share
A wider range of data is available, featuring weekly and monthly timeframes
Develop and backtest your stock trading strategies using market breadth indicators as an effective regime filter
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