merriman
Function Name: merriman
Tags: None
Category: Market Breadth
This indicator uses the A/D line and a market index. It utilizes a relationship between the two: A buy signal is given, when the A/D line is 2% or more above its moving average (with parameter "Period"), and when the index is 2% or more above its moving average (with parameter "Period"). A sell signal is given, when the A/D line is 2% or more below its moving average (with parameter "Period"), and when the index is 2& or more below its moving average (with parameter "Period").
Data components required:
- Advances - Declines - Market Index
What Does Market Breadth Mean? A technique used in technical analysis that attempts to gauge the direction of the overall market by analyzing the number of companies advancing relative to the number declining. Positive market breadth occurs when more companies are moving higher than are moving lower, and it is used to suggest that the bulls are in control of the momentum. Conversely, a disproportional number of declining securities is used to confirm bearish momentum.
The market, in which a security is traded, has to be selected from the parameter drop-down menu (single klick on the index name, then the drop-down appears); e.g. if the Merriman Breadth of "Adidas" should be calculated, one has to select "DAX".
Source: "The Complete Guide to Market Breadth Indicators - How to Analyze and Evaluate Market Direction and Strength"
by G. L. Morris, McGraw-Hill
Author: Paul Merriman
Index |
|
|
|
|
Type: |
Period |
|
|
Default Value: 150 | Minimum: 0 | Maximum: 99999 |
|
Type: Numeric |
ShowTraderBar |
|
|
Default Value: 0 |
|
Type: Boolean |
ShowTraderMark |
|
|
Default Value: -1 |
|
Type: Boolean |
ShowEachOccurence |
|
|
Default Value: 0 |
|
Type: Boolean |
UseBullishSignals |
|
|
Default Value: -1 |
|
Type: Boolean |
UseBearishSignals |
|
|
Default Value: -1 |
|
Type: Boolean |