NSE Percentage of stocks above Moving Averages
This indicator displays the percentage of NSE (India) stocks trading above key moving averages.
Market breadth measures the degree of participation & the conviction in the overall mood of the underlying index. A positive market breadth is said to happen when more stocks are advancing than are declining. Among many ways to measure this, one simple way is the % of stocks trading above a certain moving average. When most of the stocks are trading above a specific moving average, the market breadth is termed strong.
This script uses 10-day & 20-day EMA for short-term timeframes, & 50-day & 200-day EMA for medium to long-term timeframes.
Default Mode
We have a bullish bias when >50% of stocks are above their 50-day and 200-day MAs. We have a bearish bias when <50% of stocks are above their 50-day and 200-day MAs.
We also look at short-term timeframes (10 & 20 MA) for overbought and oversold levels. Values above 80% are considered overbought and readings below 20% are deemed oversold.
Individual Moving averages, & the table also, can be turned off.
Oversold/overbrought market breadth does not necessarily indicate reversal, but rather an exhaustion. This can get resolved by either a price correction or a time correction. The breadth can remain in overbought zones for a long time while the price is in a strong uptrend — and equally so at oversold zones during a strong downtrend.
Moving Average of Market Breadth
Turning-on the MA of breadth displays the 50-day Moving Average of the % of stocks above the 50-day Moving Average.
This is another way to visualise a smoothed version of the market breadth. If the % of stocks above the 50-day Moving Average is above its own 50-day Moving Average, then we can say that the breadth is strong.
Mini Mode
Turning on the mini-mode converts the table into a 4-color block, with the blocks reflecting the status of 10, 20, 50 & 200 MAs respectively, from top to bottom.
Text Mode
Turning on the text-mode converts the percentage numbers in the table into 1-word text descriptions.
Dependency:
Limitations:
Credits:
Market breadth measures the degree of participation & the conviction in the overall mood of the underlying index. A positive market breadth is said to happen when more stocks are advancing than are declining. Among many ways to measure this, one simple way is the % of stocks trading above a certain moving average. When most of the stocks are trading above a specific moving average, the market breadth is termed strong.
This script uses 10-day & 20-day EMA for short-term timeframes, & 50-day & 200-day EMA for medium to long-term timeframes.
Default Mode
We have a bullish bias when >50% of stocks are above their 50-day and 200-day MAs. We have a bearish bias when <50% of stocks are above their 50-day and 200-day MAs.
We also look at short-term timeframes (10 & 20 MA) for overbought and oversold levels. Values above 80% are considered overbought and readings below 20% are deemed oversold.
Individual Moving averages, & the table also, can be turned off.
Oversold/overbrought market breadth does not necessarily indicate reversal, but rather an exhaustion. This can get resolved by either a price correction or a time correction. The breadth can remain in overbought zones for a long time while the price is in a strong uptrend — and equally so at oversold zones during a strong downtrend.
Moving Average of Market Breadth
Turning-on the MA of breadth displays the 50-day Moving Average of the % of stocks above the 50-day Moving Average.
This is another way to visualise a smoothed version of the market breadth. If the % of stocks above the 50-day Moving Average is above its own 50-day Moving Average, then we can say that the breadth is strong.
Mini Mode
Turning on the mini-mode converts the table into a 4-color block, with the blocks reflecting the status of 10, 20, 50 & 200 MAs respectively, from top to bottom.
Text Mode
Turning on the text-mode converts the percentage numbers in the table into 1-word text descriptions.
Dependency:
- The script uses the Pine Seeds service to import custom data hosted in a GitHub repository and accesses it via TradingView as the frontend. So, the number of bars appearing on charts is fully dependent on the amount of historical data available. Any error or omission, if there, is a reflection of the hosted data, & not that of TradingView.
Limitations:
- Such data has some limitations, like it can only be updated at EOD (End-of-Day), & only daily-based timeframes can be applied to such data. Irrespective of the intraday changes, only the last saved value on the chart is seen. So, it's best to use this script as EOD, rather than intraday.
- At the time of publication of this script, historical data was available till the year 2004.
- The universe of stocks chosen for the data is all stocks with latest Close >= 1 and Market Cap > 10.
Credits:
- NSE Market Breadth data is from Chhirag_Kedia, & the Pine seeds are courtesy of EquityCraze