From the Desk of Louis Sykes @haumicharts
In yesterday’s letter, we discussed in great detail the considerations when applying AVWAP analysis to cryptocurrencies.
You can click here to read that post.
Today, we’re addressing yet another popular tool among technical analysts: market breadth. Put simply, this type of analysis lets us gauge the strength of underlying securities that compose an index or other broad group of assets.
The most common is the advance-decline line, which is used by investors to measure the number of individual stocks participating in a market trend. Using this data, analysts can get a heads-up on potential turning points in market rallies, as well as gain conviction through confirmation.
But breadth indicators can (and should) get a lot funkier.
We do a lot of market breadth analysis here at All Star Charts, primarily in the equities markets but also in foreign exchange and commodities. In crypto markets, our breadth coverage has been rather light.
So we’re happy to announce we’ll be conducting more of this research moving forward to supplement our traditional price analysis.