A measure of how widely gains or losses are distributed across securities in a market.
How it works
Breadth measures participation in a market move using observations such as advancing versus declining securities, new highs and lows, or the share above a moving average.
Example
An index can rise while most constituents fall if a small number of large companies contribute enough positive weight.
Limitations
Readings depend on the universe, weighting, data quality, and indicator definition. Narrow breadth can persist and is not by itself a reversal signal.
Evidence LedgerHow this insight was built
Human reviewedThesis being tested
This definition explains Market Breadth accurately, with its practical use and material limitations.
Key assumptions
- The named calculation or convention is stated where definitions vary.
- The example is illustrative and not a forecast or recommendation.
What could invalidate the view
- A different market, instrument, jurisdiction, or methodology may use the term differently.
- The cited authority may revise its guidance or terminology.
- Editorial ownership
- Market Master · reviewed
- Approval state
- Reviewed financial content
- Evidence currency
- Current evidence window
- Source coverage
- 2 documented sources
Sources used for this insight