Absolute breadth index

Absolute breadth index
Absolute breadth index (ABI) is market momentum indicator that was developed by Norman E. Fosback. The ABI shows much activity, volatility and change takes place on the New York Stock Exchange while ignoring the direction prices are headed. You can think of ABI as an "activity index". High readings indicate market activity and change, while low readings indicate lack of change. In the book of Mr. Fosback's Stock logic, he shows that historically, high values ​​typically lead to higher prices three to twelve months later.
The MetaStock ™ formula for absolute breadth index:
ABS (Advancing Issues - Declining Issues)
To plot it:
• Create a composite safety promotion issues - Declining issues. In versions of Windows use Downloader ™ to create a composite or DOS versions use MetaStock's File Maintenance to create complex.
• In MetaStock open the composite and plot their own formula ABS (C) on it.
** For interpretation refer to the book exchange Logic by Norman E. Fosback