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| | The Percent of Stocks Above the 100-day Moving Average is a market breadth indicator that measures the percentage of stocks trading above their 100-day moving average, a mid-term trend line. Traders use this indicator to assess market momentum and strength over a medium-term horizon. A high percentage of stocks (above 70%) are above their 100-day moving average, indicating broad market strength and a bullish trend for the mid-term. Conversely, when the percentage is low (below 30%), it signals market weakness and a bearish trend. Extreme readings, such as more than 80% of stocks above their 100-day moving average, may suggest that the market is overbought, increasing the likelihood of a correction. On the other hand, if fewer than 20% of stocks are trading above the 100-day moving average, it could indicate oversold conditions, signaling a potential rebound. Traders often use the % Above SMA(100) indicator in conjunction with others to time their trades and monitor shifts in market sentiment. |
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