The Market Thrust indicator is a powerful measure of the stock market's internal strength or weakness. There are four components to this indicator:
1-Advancing Issues on the New York Stock Exchange (NYSE) – AADV 2-Advancing Volume on the NYSE – UUVOL 3-Declining Issues on the NYSE – DDECL 4-Declining Volume on the NYSE – DDVOL
When used for day-trading, the trend of the Market Thrust indicator is what is most important.
Rising Market Thrust Indicator: Considered a bullish sign; can act as a confirmation signal when combined with a rising stock, index ETF, or stock index future's price.
Falling Market Thrust Indicator: Considered a bearish sign; can act as a confirmation signal of a decreasing market price.
The Market Thrust indicator could be used for detecting divergences in trends. Divergences occur when:
- Price is trending higher, but the Market Thrust indicator is not moving higher or is even going down. - Price is trending lower, however, the Market Thrust technical analysis tool is not trending lower, it is either not trending or is trending higher.