Market Breadth - Primary IndicatorMarket Breath is the equilibrium between number of stocks in advance to those in a decline, in other words a method to determine the current market environment. In a positive phase bullish setups will have improved probabilities and presence, whereas in a bearish phase the opposite would be true.
The primary indicator measure the trend in SPY and correlation between different EMA's.
- Green Columns: Positive Breadth
- Red Columns: Negative Breadth
This indicator can be combined with the secondary breadth indicator to further note excessive movement and risk of mean reversion.
Breadthtools
BANKNIFTY Free Float VolumeThis indicator is build keeping in mind how the Indian Market is formed - free-float market capitalization concept
1) Considered all banknifty index stocks according to NSE
2) Multiplied each stock Volume by its Weightage given in NSE Site every month End - means giving importance to volume by its weightage
3) Green Candle - Considered as +Ve Volume , Red Candle - Considered as -Ve Volume
4) Diff of +Ve Volume & -Ve Volume give clear picture market will go up or down
Note:- This Indicator work only for 15 Min time frame
Gives better results good Risk Reward used near Supp/Resistance
Combine with BANKNIFTY / NIFTY Advance-Decline Ratio give confidence on the move
Eg:-
Bullish Scenario
Near Support, Volume Turned -Ve to +Ve, Adv /Dec of Nifty >30/35 or BNF Adv /Dec > 7
or combine any candle patterns( Pin Bar ) at Sup/Res or combine with Chart Pattern(Triangle/ Rectangle )
Can take 75 Pts as SL and target 150-200 Pts
Bearish Scenario - Vice Versa to above
backtested results showed high Accuracy when used in combination of Sup/Res
