By the end of this chapter, you should
• Understand the importance of measuring internal market strength
• Understand what is meant by market breadth
• Be familiar with how the advance-decline line measures market breadth
• Be familiar with how up and down volumes relate to market strength
• Be familiar with how new high and new low statistics measure market strength
• Be familiar with the relationship between the number of stocks above their historical moving average and market strength
In the previous chapter, we looked at the importance of market player sentiment in determining potential market trends. In addition to measuring the attitudes of market players, the technical analyst needs ...