Breadth of Market Theory

Breadth of Market Theory is a theory based on technical analysis that predicts the strength of the market according to the overall participation of member stocks of a particular stock exchange.

Breadth of Market Theory

Breadth of Market Theory is a theory based on technical analysis that predicts the strength of the market according to the overall participation of member stocks of a particular stock exchange.


'Breadth Of Market Theory' Interpretation

If the stock exchange index rises but the overall advancing volume of the underlying stocks is not significant then the Breadth of Market Theory implies that the stock market advance will likely not persist.

The same holds for stock market declines. If the decline is not accompanied by market breadth then the decline is temporary.  There are several breadth indicators used to measure market breadth.

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