The Market Thrust indicator is a powerful measure of the stock market's internal strength or weakness. There are four components to this indicator:
- Advancing Issues on the New York Stock Exchange (NYSE) - $ADV or $NYADV
- Advancing Volume on the NYSE - $UVOL or $NYUPV
- Declining Issues on the NYSE - $DECL or $NYDEC
- Declining Volume on the NYSE - $DVOL or $NYDNV
The formula for Market Thrust is given below:
- (Advancing Issues x Advancing Volume) - (Declining Issues x Declining Volume)
A chart of the mini-Dow futures contract is shown below:
When used for day-trading, the trend of the Market Thrust indicator is what is most important.
- Rising Market Thrust Indicator: Bullish sign; Acts as a confirmation signal when combined with a rising stock, index ETF, or stock index future's price.
- Falling Market Thrust Indicator: Bearish sign; Acts as a confirmation signal of a decreasing market price.
As will be shown on the next page, the Market Thrust indicator is a powerful divergence indicator
