OPEN-SOURCE SCRIPT

DOW 30 - Market Breadth

Updated
DOW 30 indicator is intended for short-term intraday analysis and should not be used solely alone. Best to use this indicator in a combination with technical and fundamental analysis.

This indicator is calculated from all stocks in the DJI as of 8/9/2022;
- Evaluating VWAP,
- 9 EMA,
- 20 EMA.

Vwap Calculations;
Stock above Vwap = 1 (Vwap Bull),
Stock below Vwap = 1 (Vwap Bear),
As there are 30 stocks in the DJI, there is a max value of 30 Vwap Bulls/ Vwap Bears.

Ema Calculation;
Stock above 9 EMA = 0.5 (EMA Bulls),
Stock below 9 EMA = 0.5 (EMA Bears),

Stock above 20 EMA = 0.5 (EMA Bulls),
Stock below 20 EMA = 0.5 (EMA Bears),

For the EMA Bulls to reach 30 all stocks must be trading above both the 9 EMA and 20 EMA to reach a Max Value of 30.
The reasoning for this calculation is to suggest the current strength and speed of the current turn in the market.

Horizontal Lines:

There are three horizontal lines, MAX, MIN & Neutral;

MAX & MIN
Resides at the 30 & 0 levels suggesting the market is currently at an extreme. Representing all stocks are moving in the same direction together.
When the MAX or MIN are represented in the VWAP Line this represents directional conviction in the underlining DJI.

Neutral
Neutral resides at the 15 level and represents that the market is either about to make a decision or is choppy.


EXAMPLE
Below are some examples of how the DOW 30 indicator is able to represent the current market conditions.

snapshot
Understand Current Market Conditions, either being Bullish, Neutral, or Bearish.

snapshot
See live Market Mechanics, and understand the current market direction on a short-term timeframe.

DOW 30 indicator is intended for short-term intraday analysis and should not be used solely alone. Best to use this indicator in a combination with technical and fundamental analysis.
If there are any additional requests to the indicator feel free to leave a comment or privet message.
Best of luck trading.

Release Notes
*UPDATE
Standard View of the momentum indicator (EMA) to plot style area.
Release Notes
Updated To V2
Significant changes made:
All stocks Weighted to the DJI index,
The new addition of the Advance-Decline.



snapshot
Addition of the Advance / Decline Line

snapshot
Momentum & Vwap Algo Weighted to the index.
Release Notes
NA
Breadth IndicatorsDIADJIdowjonesmarketbreadthmarketstructure

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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