Q9. “Market breadth indicators analyze the number of stocks advancing relative to those that are declining in a given index or on a stock exchange. Positive market breadth occurs when more stocks are advancing than are declining. This suggests that the bulls are in control of the market's momentum and helps confirm a price rise in the index. Conversely, a disproportional number of declining securities is used to confirm bearish momentum and a downside move in the stock index". Explain it by completing the below mentioned table and how the calculation of this table supports to understand the market trends? Day Decline Daily Difference Breadth(difference cumulative) Advance Monday Tuesday Wednesday 600 300 450 500 350 600 Thursday Friday 580 380 700 300
Q9. “Market breadth indicators analyze the number of stocks advancing relative to those that are declining in a given index or on a stock exchange. Positive market breadth occurs when more stocks are advancing than are declining. This suggests that the bulls are in control of the market's momentum and helps confirm a price rise in the index. Conversely, a disproportional number of declining securities is used to confirm bearish momentum and a downside move in the stock index". Explain it by completing the below mentioned table and how the calculation of this table supports to understand the market trends? Day Decline Daily Difference Breadth(difference cumulative) Advance Monday Tuesday Wednesday 600 300 450 500 350 600 Thursday Friday 580 380 700 300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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