OPEN-SOURCE SCRIPT
NASDAQ Breadth Ratio Analyzer
If-Then Overview
If the Ratio > 60%: Strong uptrend – consider long trades.
If the Ratio < 40%: Strong downtrend – consider short trades.
If the Ratio is between 40% and 60%: Neutral – expect sideways or choppy conditions.
Introduction
The NASDAQ Breadth Ratio Analyzer provides traders with a clear and visual representation of market breadth specifically for the NASDAQ. By calculating the ratio of Up-Volume to Down-Volume as a percentage, it identifies whether the NASDAQ market is in a strong uptrend, downtrend, or neutral state.
Purpose of the Indicator
Identify Trending Days: Quickly determine if the NASDAQ market is trending up or down.
Avoid Choppy Markets: Filter out indecisive sideways market conditions.
Assess Market Strength: Measure the balance between buying (Up-Volume) and selling (Down-Volume).
Displayed Information
Dynamic Table (at the top of the chart):
Market: NASDAQ.
Ratio (%): The percentage of Up-Volume relative to total traded volume.
Status:
Strong Uptrend: Ratio > 60%.
Strong Downtrend: Ratio < 40%.
Neutral: Ratio between 40% and 60%.
Plotted Lines:
Breadth Ratio for NASDAQ is displayed as a line for trend tracking.
Blue: Indicates an uptrend (Ratio > 50%).
Red: Indicates a downtrend (Ratio < 50%).
Zero Line:
A grey zero-line acts as a visual reference to distinguish positive and negative breadth.
Status Determination:
Strong Uptrend: Ratio > 60%.
Strong Downtrend: Ratio < 40%.
Neutral: Ratio between 40% and 60%.
Visual Representation:
A dynamic table displays real-time ratios and status updates.
The ratio is plotted as a line for continuous monitoring over time.
Use Cases
Identifying Trending Days:
If the NASDAQ Ratio is consistently above 60%, it indicates strong buying pressure and a clear uptrend.
Recognizing Choppy Days:
If the Ratio fluctuates between 40% and 60%, expect indecision and sideways price movement.
Measuring Extreme Sentiment:
Extremely high or low Ratio values can signal potential reversals or trend exhaustion.
Indicator Settings
Scale Factor: Normalizes volume data for clarity (default: 1,000,000).
Color Highlights:
Blue: Indicates a strong uptrend.
Red: Indicates a strong downtrend.
Zero Line: Grey reference line to separate positive and negative ratios.
Advantages
Focused Analysis: Exclusively tracks NASDAQ market breadth for precision.
Real-Time Visualization: Provides live updates on buying and selling strength.
Clear Trend Signals: Color-coded status helps traders quickly identify market direction.
Filter Out Noise: Avoid trading in sideways markets by identifying neutral conditions.
Summary
The NASDAQ Breadth Ratio Analyzer is a streamlined tool for traders focused on the NASDAQ. By measuring the Up-Volume to Down-Volume ratio, it delivers real-time insights into market sentiment, helping traders identify trends, filter out choppy markets, and make confident, informed decisions.
Follow me for updates and more: TraderNautilus 🚀
If the Ratio > 60%: Strong uptrend – consider long trades.
If the Ratio < 40%: Strong downtrend – consider short trades.
If the Ratio is between 40% and 60%: Neutral – expect sideways or choppy conditions.
Introduction
The NASDAQ Breadth Ratio Analyzer provides traders with a clear and visual representation of market breadth specifically for the NASDAQ. By calculating the ratio of Up-Volume to Down-Volume as a percentage, it identifies whether the NASDAQ market is in a strong uptrend, downtrend, or neutral state.
Purpose of the Indicator
Identify Trending Days: Quickly determine if the NASDAQ market is trending up or down.
Avoid Choppy Markets: Filter out indecisive sideways market conditions.
Assess Market Strength: Measure the balance between buying (Up-Volume) and selling (Down-Volume).
Displayed Information
Dynamic Table (at the top of the chart):
Market: NASDAQ.
Ratio (%): The percentage of Up-Volume relative to total traded volume.
Status:
Strong Uptrend: Ratio > 60%.
Strong Downtrend: Ratio < 40%.
Neutral: Ratio between 40% and 60%.
Plotted Lines:
Breadth Ratio for NASDAQ is displayed as a line for trend tracking.
Blue: Indicates an uptrend (Ratio > 50%).
Red: Indicates a downtrend (Ratio < 50%).
Zero Line:
A grey zero-line acts as a visual reference to distinguish positive and negative breadth.
Status Determination:
Strong Uptrend: Ratio > 60%.
Strong Downtrend: Ratio < 40%.
Neutral: Ratio between 40% and 60%.
Visual Representation:
A dynamic table displays real-time ratios and status updates.
The ratio is plotted as a line for continuous monitoring over time.
Use Cases
Identifying Trending Days:
If the NASDAQ Ratio is consistently above 60%, it indicates strong buying pressure and a clear uptrend.
Recognizing Choppy Days:
If the Ratio fluctuates between 40% and 60%, expect indecision and sideways price movement.
Measuring Extreme Sentiment:
Extremely high or low Ratio values can signal potential reversals or trend exhaustion.
Indicator Settings
Scale Factor: Normalizes volume data for clarity (default: 1,000,000).
Color Highlights:
Blue: Indicates a strong uptrend.
Red: Indicates a strong downtrend.
Zero Line: Grey reference line to separate positive and negative ratios.
Advantages
Focused Analysis: Exclusively tracks NASDAQ market breadth for precision.
Real-Time Visualization: Provides live updates on buying and selling strength.
Clear Trend Signals: Color-coded status helps traders quickly identify market direction.
Filter Out Noise: Avoid trading in sideways markets by identifying neutral conditions.
Summary
The NASDAQ Breadth Ratio Analyzer is a streamlined tool for traders focused on the NASDAQ. By measuring the Up-Volume to Down-Volume ratio, it delivers real-time insights into market sentiment, helping traders identify trends, filter out choppy markets, and make confident, informed decisions.
Follow me for updates and more: TraderNautilus 🚀
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.