Advance Decline

Advance Decline group - Hughes Breadth Index HBI - Nicoski Index NIX

In the literature there are numerous variations on the Advance Decline Indicators group. Basically, all these variants have in common is that the increased number of killed and values ​​of a particular market or index is at the center. Based on the number and volume of the higher, fallen and unchanged classes will be attempted through a clever combination of these output values ​​useful indicator forms to obtain, with the problem for German markets on the one hand, in the data collection and the other in the distorting influence of the unchanged values ​​in low market-wide indices, such as the Dow is.

A well-known oscillator from the series of Advance Decline Indicators named Hughes Breadth Index, abbreviated to HBI. Mathematically, the HBI calculated by dividing the net change in higher values ​​and fallen by the sum of the values ​​increased and fallen. In practice, in the determination of the indicator value two fundamentally different approaches in the first variant is first the index value is calculated and then performed a smoothing, is the second option, proceed exactly reversed (input values ​​over the period indicating averaged and then to indicator calculation used). The average is taken over a sample period of 10 days.


As for the interpretation of the whole calculation skills, positive values ​​of the oscillator signals a corresponding improvement in market dynamics, have negative values, however, the Bears call the shots. As a signal of a turnaround - both positive and negative sense - to the crossing of the zero-line are used. In addition, the Hughes Breadth offers to check the trend of the strength of actual price performance. HBI to develop and market diverge so fashionable at the investor side increased vigilance.

Over a longer-term orientation, but has a similar origin of Nicoski Index, abbreviated NIX. The constructed first a smoothing of the number of fallen or increased market prices over the calculation period 30 days, after which the Advance-Decline mean by the mean divided. In principle, characterized the trend of the index Nicoski nice after, also indicate values ​​above the median line, a negative and positive values ​​below a momentum. As a signal for a medium Trendumnkehr turn can be considered crossing the midline.