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The Market Thrust indicator is a powerful measure of the stock market's internal strength or weakness. There are four components to this indicator: |
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- on the New York Stock Exchange (NYSE) - $ADV or $NYADV
- on the NYSE - $UVOL or $NYUPV
- on the NYSE - $DECL or $NYDEC
- on the NYSE - $DVOL or $NYDNV
The formula for Market Thrust is given below:
- (Advancing Issues x Advancing Volume) - (Declining Issues x Declining Volume)
A chart of the mini-Dow futures contract is shown below:
When used for day-trading, the trend of the Market Thrust indicator is what is most important.
- : Bullish sign; Acts as a confirmation signal when combined with a rising stock, index ETF, or stock index future's price.
- : Bearish sign; Acts as a confirmation signal of a decreasing market price.
As will be shown on the next page, the Market Thrust indicator is a powerful divergence indicator
Next Page - Market Thrust Divergences |
