Breadth-Based Momentum Strategies

Strategic approaches combining market breadth analysis with momentum indicators for enhanced market timing and trend identification.

Breadth-momentum strategies combine the power of market participation analysis with momentum indicators to identify high-probability trend continuations and reversals.

Key Insights

Point 1

Important

Breadth thrust signals and follow-through

Point 2

Important

Momentum confirmation using breadth data

Point 3

Important

Sector rotation and breadth patterns

Point 4

Important

Volume-weighted breadth indicators

Point 5

Important

Breadth divergence pattern recognition

Practical Applications

1

Wait for breadth confirmation of momentum signals

2

Use breadth thrust (>90% stocks up) for trend starts

3

Monitor sector breadth for rotation opportunities

4

Combine price momentum with participation strength

5

Watch for breadth deterioration in uptrends