Advance-Decline Hughes Breath-Momentum Oscillator

The Advance-Decline Hughes Breath-Momentum Oscillator is used to analyze the strength with which a market evolves.

Calculation Method

For a given market, the moving average is calculated over a certain period (usually short) of the following ratio:

where:

• N_H: Number of advancing securities
• N_B: Number of declining securities
• N_I: Number of unchanged securities

Example

Interpretation

Crossing the zero line upward or downward can respectively constitute a buy or sell signal.