[INVX] SET Breadth Indicator

What is it ?
  • Market Breadth is a technical analysis tool that measures the overall direction of the market by looking at the number of companies advancing versus the number declining. It's like taking a pulse of the market to see whether more stocks are moving up or down.
  • The SET Breadth Indicator is a tool designed to help investors understand the overall market sentiment of the Stock Exchange of Thailand (SET). It measures the performance of all sector indexes within the SET to provide a broader view of market trends.

Why Set breath Indicator?
  • Market breadth helps investors understand the health and strength of the market. A rising market with strong breadth means many stocks are contributing to the upward movement, which is a positive sign. Conversely, a rising market with weak breadth (few stocks going up) might indicate potential weakness.
  • The SET Breadth Indicator is essential as it reveals overall market sentiment, serving as an early warning system for potential weakness. It informs investment decisions, confirms market trends, aids in portfolio diversification, and enhances risk management by monitoring sector performance. In summary, it provides deeper market insights, helping investors make better decisions.

How to use?
  • Trend Following - SET Breadth Indicator can be used to trade in trend-following style where you may enter long/short position when the indicator turns green/red, then exit position when the indicator crosses the zero
  • Reversion - SET Breadth Indicator can be used to trade in reversion style where you may enter long/short position as opposed to the market direction, for example, when the indicator is significantly high/low, it might imply that the trend is likely to revert soon.