OPEN-SOURCE SCRIPT
Weighted NIFTY 5D Directional Breadth
Overview
This indicator measures market participation quality within the NIFTY index by tracking how many heavily-weighted stocks are contributing to index direction over a rolling 5-day period.
Instead of counting simple up/down closes, it evaluates directional momentum × index weight, making it far more reliable for identifying narrow leadership, distribution, and late-stage rallies.
Why this indicator matters
Indexes can continue making higher highs even when only a few large stocks are doing the lifting.
This tool reveals what price alone hides:
Whether participation is broad or narrowing
When index highs are being driven by fewer contributors
Early warnings of fragility before corrections
How it works
Each selected NIFTY stock is assigned a weight approximating index influence
The indicator checks whether each stock is up or down versus its 5-day close
Directional signals are weighted and aggregated
The result is a single breadth line reflecting true contribution strength
Positive values → weighted participation is supportive
Negative values → weighted drag beneath the index
How to interpret
Index Higher High + Indicator Lower High
→ Narrow leadership, distribution risk
Indicator turns down before price
→ Early loss of momentum
Sustained positive readings
→ Healthy, broad participation
Sustained negative readings
→ Market weakness beneath the surface
This is not a buy/sell signal, but a context and risk-assessment tool.
Best use cases
Identifying late-stage rallies
Confirming or rejecting breakouts
Risk management for index trades
Combining with price structure or momentum indicators
Notes
Designed for Daily and higher timeframes
Uses non-repainting logic
Best used alongside price action and structure
Disclaimer
This indicator is intended for educational and analytical purposes only.
It does not provide financial advice or trade recommendations.
This indicator measures market participation quality within the NIFTY index by tracking how many heavily-weighted stocks are contributing to index direction over a rolling 5-day period.
Instead of counting simple up/down closes, it evaluates directional momentum × index weight, making it far more reliable for identifying narrow leadership, distribution, and late-stage rallies.
Why this indicator matters
Indexes can continue making higher highs even when only a few large stocks are doing the lifting.
This tool reveals what price alone hides:
Whether participation is broad or narrowing
When index highs are being driven by fewer contributors
Early warnings of fragility before corrections
How it works
Each selected NIFTY stock is assigned a weight approximating index influence
The indicator checks whether each stock is up or down versus its 5-day close
Directional signals are weighted and aggregated
The result is a single breadth line reflecting true contribution strength
Positive values → weighted participation is supportive
Negative values → weighted drag beneath the index
How to interpret
Index Higher High + Indicator Lower High
→ Narrow leadership, distribution risk
Indicator turns down before price
→ Early loss of momentum
Sustained positive readings
→ Healthy, broad participation
Sustained negative readings
→ Market weakness beneath the surface
This is not a buy/sell signal, but a context and risk-assessment tool.
Best use cases
Identifying late-stage rallies
Confirming or rejecting breakouts
Risk management for index trades
Combining with price structure or momentum indicators
Notes
Designed for Daily and higher timeframes
Uses non-repainting logic
Best used alongside price action and structure
Disclaimer
This indicator is intended for educational and analytical purposes only.
It does not provide financial advice or trade recommendations.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.