Developed by Dr. Martin Zweig, the Breadth Thrust Indicator measures market momentum. The Breadth Thrust is calculated by dividing a 10-day exponential moving average of the number of advancing issues, by the number of advancing plus declining issues.
A "Breadth Thrust" occurs when, during a 10-day period, the Breadth Thrust indicator rises from below 40% to above 61.5%. A "Thrust" indicates that the stock market has rapidly changed from an oversold condition to one of strength, but has not yet become overbought. According to Dr. Zweig, there have only been fourteen Breadth Thrusts since 1945. The average gain following these fourteen Thrusts was 24.6% in an average time-frame of eleven months. Dr. Zweig also points out that most bull markets begin with a Breadth Thrust.
A weekly chart is best for this indicator.
declare lower;
plot zw = ExpAverage(data = close("$advn"), length = 10 ) /( ExpAverage(data=close("$advn"), length=10) + ExpAverage(data=close("$decn"), length = 10));
plot forty = 0.40;
forty.SetDefaultColor(Color.RED);
plot sixfifteen = 0.615;
sixfifteen.SetDefaultColor(Color.Yellow);
