Absolute breadth index
From Financial Literacy Wiki
The Absolute Breadth Index (ABI) is a market momentum indicator as well as measures the volatility level in the market.
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Calculation
The ABI takes into account the number of stocks that have increased in price or decreased in price without considering the overall price direction.
The calculation is as follows and it can be applied to any market or subsets of markets.
ABI = ABS(No. of Advancing Issues - No. of Declining Issues)
Usually, technical investors would calculate and plot several moving averages together with the market index to determine which moving average has a higher correlation to the market index and from there decide how the ABI would be used to show an indication of the market.
