Info!! Using Intraday Breadth To Guess Breakouts As Well As Fakeouts

If y'all click on the nautical chart above, y'all volition come across 15-minute bars for the ES futures contract for the twenty-four hours trading session, 8/4/14.  At the transcend of each bar is the discover of stocks closing that stream at twenty-four hours session highs.  At the bottom of each bar is the discover of stocks closing that stream at twenty-four hours session lows.  This includes all United States of America of America stocks (NYSE, NASDAQ, etc.) in addition to the numbers stand upward for novel highs or lows *just for the twenty-four hours session*.

Notice how nosotros opened alongside weakness despite beingness upward from Friday's close.  Note too how the upside breakout from the day's gain to that signal (at the 13:30 ET bar) was accompanied past times a meaningful expansion of novel highs in addition to contraction of novel lows such that novel highs directly led novel lows on the day.

For the residue of the day, novel highs expanded, novel lows contracted, in addition to of class novel highs outnumbered novel lows.  (Chart was created manually from e-Signal data).

Sometimes the marketplace averages tin motion higher or lower, alongside the moves dominated past times a relative handful of highly-weighted large cap stocks.  Other times, the marketplace averages tin motion to fresh highs or lows in addition to the wide marketplace fully participates.  The intraday novel high/new depression numbers nicely capture wide marketplace participation during moves--and were helpful inward validating the midday upside breakout.

Further Reading:  Identifying Trend Days With Intraday Highs in addition to Lows
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