What is Zweig Breadth Thrust indicator?

 The Zweig Breadth Thrust is a rare but powerful bullish signal developed by Marty Zweig, a legendary investor and market technician.

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📘 What is the Zweig Breadth Thrust?

It measures breadth momentum—how many stocks are advancing vs. declining—to spot early signs of a major market rally.

✅ Formula:

Zweig Breadth Thrust (ZBT) =

10-day EMA of Advancing Issues ÷ (Advancing + Declining Issues)

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📈 What Does It Look For?

A ZBT signal is triggered when:

1. The indicator rises from below 0.40

2. To above 0.615

3. Within 10 trading days

📊 Example:

• Let’s say only 38% of stocks are advancing → ZBT = 0.38 (oversold zone)

• Then in the next 10 days, the ratio surges to 0.62+ → ZBT triggers a signal

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🧠 What It Means

It suggests a violent shift from pessimism to optimism in the market—like a slingshot.

🟢 Signal Interpretation:

• Extremely bullish: Historically, it led to strong 6–12 month returns.

• Rare: Has occurred only a handful of times since the 1940s (e.g. 1982, 2009, 2020).

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🛠️ How to Track It

You’ll need:

• Advance/Decline data (NYSE usually)

• A charting platform that can compute EMA(10) of the advance ratio

• Or a prebuilt indicator like:

  • TradingView script: "Zweig Breadth Thrust" in community scripts

  • Market breadth dashboards on StockCharts or SentimenTrader

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🧩 Strategy Tip

Combine with:

• Moving averages (e.g., SPX above 200-day MA)

• Sector strength (tech, financials, etc.)

• Volume confirmation

To align price + breadth + momentum = A+ setup