The indicator moves between 0% and 100%. A cross above 50% shows that most stocks in the index are now in long-term uptrends, and a cross below 50% shows that most are in downtrends. The 200-day average is the classic long-term trend line, so this version shows the health of the primary trend and changes slowly. Divergences are worth watching as well: when an index makes a new high but fewer stocks trade above their 200-day moving average, the rally is narrowing.
The charts above show the % of stocks above the 200-day moving average under the price of 24 stock indexes, from the S&P 500, Nasdaq 100 and Russell 2000 to the FTSE 100, DAX and Nifty 50, so you can compare breadth across markets at a glance. Click a chart to open a larger version.
Related stock screens: Price Crossed Above MA(200) Stocks, Price Crossed Below MA(200) Stocks and New 52-Week High Stocks. You can also use market breadth as a filter in your own screens and strategies in the Formula Screener and the Strategy Backtester.
It is a market breadth indicator that shows the share of stocks in an index trading above their own 200-day simple moving average. It measures how broad the long-term trend is.
For each stock in the index, the close is compared with its 200-day moving average. The number of stocks above the average is divided by the number of stocks in the index and multiplied by 100.
Readings above 50% mean most stocks are in long-term uptrends. Readings above 70% to 80% show broad strength but can also mean the market is overbought, while readings below 20% to 30% point to an oversold market.
The 200-day moving average is the most watched long-term trend line. A stock above it is generally in a long-term uptrend, so the share of such stocks shows how healthy the primary market trend is.
Yes. In the Formula Screener, a200ma is this indicator. For example, index(nasdaq100) and rsi(14) ca 30 and (a200ma > 60)@sp500 finds Nasdaq 100 stocks whose RSI crossed above 30 while more than 60% of S&P 500 stocks are above their 200-day SMA. The same condition works as a market filter in the Strategy Backtester.
