|
|
|
|
|
| | The Percent of Stocks Above the 20-day Moving Average is a short-term market breadth indicator that shows the percentage of stocks trading above their 20-day moving average, a key indicator of short-term momentum. Traders use this indicator to gauge market strength or weakness over a shorter time frame. When a high percentage of stocks (above 70%) are trading above their 20-day moving average, the market is in a short-term bullish phase. Conversely, a low percentage of stocks (below 30%) above their 20-day moving average signals short-term market weakness, indicating a potential bearish trend. Extreme readings, such as more than 80% of stocks above the 20-day moving average, might indicate overbought conditions, while less than 20% could suggest an oversold market poised for a rebound. Traders often use the % Above SMA(20) indicator to time entry and exit points in the short term, watching for reversals or trend confirmations in line with market sentiment. |
|
| |
