DAX Breadth Index [+Divergences]

🟦 DAX Breadth 9 Index with Divergence Detection (DIB9)
Real-time use requires XETRA feed

🧭 Overview
This indicator calculates a custom market breadth index for the German DAX, based on 9 structurally significant stocks.
It reveals internal market strength, detects divergences between price and participation, and serves as a directional filter in discretionary or systematic trading strategies.

🔹 Why these 9 stocks?
The components are selected based on Pareto logic, focusing on:

• Large market capitalization
• High structural influence on the DAX index
• Diversified across sectors (Technology, Industry, Finance, Chemicals)
• Strong correlation with DAX intraday and swing dynamics

Included Stocks:
SAP, Siemens, Allianz, Airbus, Deutsche Telekom, Mercedes-Benz, BASF, Munich Re, Deutsche Bank

📊 What the indicator shows
• Breadth % – % of components closing above previous close
• VWAP Breadth % – % of components above session VWAP
• Volume Thrust – Volume-weighted strength of advancing stocks
• Breadth MA – Smoothed view to capture mid-term trend shifts
• Divergences – Breadth MA vs DAX Price for reversal signals

⚙️ Calculation Logic
The indicator combines three perspectives of internal market behavior:

• Breadth %
 → Measures daily participation
  = (Number of advancers / 9) × 100

• VWAP Breadth %
 → Measures intraday bullish strength
  = (Stocks above VWAP / 9) × 100

• Volume Thrust
 → Measures volume-weighted conviction
  = (Volume of advancing stocks / Total volume) × 100

A configurable MA (EMA/SMA/TEMA) is applied to the Breadth % to smooth noise and detect trend inflection.
Divergence signals occur when Breadth MA contradicts DAX price direction – highlighting internal weakness or strength.

🔍 Use Cases
• Detect local tops or bottoms through Breadth reversal
• Identify early turning points via Breadth/DAX divergence
• Validate or challenge DAX signals from other strategies
• Use as real-time filter in algorithmic or rule-based trading
• Best used on higher timeframes (H1, H4)

⚠️ Important Notice
This indicator requires the XETRA feed for live calculations.
Without it, component prices won’t update in real time, and the accuracy of signals – especially intraday – will be significantly reduced.