How does it begin?
Traders and investors use market breadth in order to assess the index's overall health. Market breaTdth can be a reliable, if not an accurate, indicator of a price rise in the index, Similarly, it can also provide early warning signs for a future price decline. What is it? Market breadth indicators analyze the nurture of stocks advancing relative to those that are declining in a given index or on a stock exchange. Market breadth refers to how many stocks are participating in a given move in an index or on a stock exchange. An index may be rising yet more than half the stocks in the index are falling Because a small number of stocks have such large gains that they drag the whole index higher.
How does it work?
Market breadth studies attempt to uncover strength or weakness in the movements of an index that are not visible simply by looking at a chart of the index.