Swenlin Trading Oscillator Breadth


Function Name: stob

Tags: Oscillator

Category: Market Breadth

The Swenlin Trading Oscillator-Breadth was designed for short-term trading. It is a 5-day simple moving average of a 4-day exponential average of the daily advances minus declines divided by the total daily advances and declines times 1000. This is the ratio that is common in Swenlin's work.

The double smoothing of the short-term data results in a reliable oscillator that persists in one direction, usually tops near short-term market tops, and bottoms near short-term market bottoms. As with most indicators, the primary trend of the market will determine how you will use the indicator. In a bull market, the tops will not be very reliable. In a bear market, the bottoms wil not be very reliable.

Data components required:

- Advances - Declines

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 ITBM 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:   Carl Swenlin










Default Value: 5  |  Minimum: 0  |  Maximum: 99999


Type: Numeric



Default Value: 4  |  Minimum: 2  |  Maximum: 99999


Type: Numeric