Absolute Breadth Index


The Absolute Breadth Index (ABI) is a market indicator used to determine volatility levels in the market without factoring in price direction. It is calculated by taking the absolute value of the difference between the number of advancing issues and the number of declining issues. Typically, large numbers suggest volatility is increasing, which is likely to cause significant changes in stock prices in the coming weeks.

Details on Absolute Breadth Index

: It highly related to the advanced decline line. The calculation of the ABI uses the number of Advancing and Declining issues and compares that to the previous one. The calculation is quite complex but luckily there are multiple charting softwares and ways to get this information. The easiest of which is most technical chart softwares have this built in so the calculation is not necessary.