Breakaway momentum is a "breadth thrust" coined by Walter Deemer in the 1970s that occurs when the ten-day total advances on the NYSE are greater than 1.97 times the ten-day total NYSE declines.
This indicator calculates the ratio and plots it as a histogram. The 1.97 threshold is also plotted as a horizontal line. Anytime the histogram gets above the line Breakaway Momentum has occurred.
This is a rare signal that has only happened 25 times since 1945.
Sir, It gives information for both Index & stocks.
But We should look it for Index only or we should look for stocks also?
Amphibiantrading
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@jeewangarg, This is based on Walter Deemer's research. This uses the NYSE advancers and decliners for the calculations no matter what index or stock you're looking at
jeewangarg
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@Amphibiantrading, So if I am checking it for the following stock and see the value is going above 1.97 I can assume that stock may go down
DC354
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@jeewangarg, Hi, I hope all is well. Since it's a breadth indicator, it's not meant for an individual stock but rather to test the health of the overall market in general. It's meant to be used on wider indexes like IXIC, SPY, IWM, QQQ etc.
DC354
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@jeewangarg, Additionally, you're looking at an Indian stock whereas this indicator uses advances and declines in NYSE (New York Stock Exchange). Might not be much helpful!
Zuper_Looper
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Very nice job on the Deemer BAM. I'm new to Tradingview & Pine Script. This example helped me quite a bit.
Amphibiantrading
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@Zuper_Looper, thank you! I’m glad this has helped you
Miru84
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nice man.Thank you! I have a question: How can you make this indicator to go back to 2000-2002?
Amphibiantrading
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@Miru84, no problem! I don’t think TradingView has the data from that far back. That would be the only reason you can’t see it
Mkal89
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How can this strategy be tested on different indices like ASX, DJIA etc ?
But We should look it for Index only or we should look for stocks also?