InvestorQ : What are some of the key market specific ratios that you can use to judge the market trend on daily data?
Crowny Pinto made post

What are some of the key market specific ratios that you can use to judge the market trend on daily data?

Answer
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1 year ago
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There are many such measures that you can use but the most common are the advance decline ratio, ratio of upper circuit to lower circuit and the ratio of 52 week high to 52 week low. All these are measured in terms of number of stocks and cab be combined to give a useful trend of the market.

Date

Securities Traded

Advance

Decline

A/D Ratio

Upper Circuit

Lower Circuit

Upper / Lower Ratio

Securities Touching 52W H

Securities Touching 52W L

52 Week H/L Ratio

01-01-2020

2831

1471

1150

1.28

180

233

0.77

70

93

0.75

02-01-2020

2928

1859

889

2.09

202

274

0.74

89

86

1.03

03-01-2020

2984

1367

1389

0.98

208

223

0.93

85

76

1.12

06-01-2020

2991

725

2058

0.35

296

190

1.56

90

109

0.83

07-01-2020

2921

1685

1038

1.62

198

206

0.96

67

93

0.72

08-01-2020

2869

1122

1544

0.73

229

175

1.31

76

91

0.84

09-01-2020

3026

1934

857

2.26

213

250

0.85

103

88

1.17

10-01-2020

3003

1560

1247

1.25

201

237

0.85

104

81

1.28

13-01-2020

2957

1678

1078

1.56

216

222

0.97

97

92

1.05

14-01-2020

2918

1587

1147

1.38

200

218

0.92

115

86

1.34

15-01-2020

2968

1586

1171

1.35

213

234

0.91

122

84

1.45

16-01-2020

2988

1583

1179

1.34

219

264

0.83

134

103

1.30

17-01-2020

2952

1454

1299

1.12

209

241

0.87

116

72

1.61

20-01-2020

2961

1058

1710

0.62

228

194

1.18

126

91

1.38

21-01-2020

2938

1220

1528

0.80

223

204

1.09

98

82

1.20

22-01-2020

2914

1173

1545

0.76

222

192

1.16

84

81

1.04

23-01-2020

2907

1564

1170

1.34

210

214

0.98

89

83

1.07

24-01-2020

2964

1502

1265

1.19

201

224

0.90

120

103

1.17

27-01-2020

2957

1162

1607

0.72

216

213

1.01

129

97

1.33

28-01-2020

2968

1087

1679

0.65

215

220

0.98

110

94

1.17

29-01-2020

2929

1394

1333

1.05

237

192

1.23

123

102

1.21

30-01-2020

2862

887

1780

0.50

210

158

1.33

90

88

1.02

31-01-2020

2793

1065

1540

0.69

206

178

1.16

98

96

1.02

The above table has considered the three ratios; the advance decline ratio, upper / lower circuit ratio and the high/low ratio for the month of January. Normally, an A/D ratio of over 1 is positive but that is not so important as the trend. When the A/D ratio is consistently falling from above 1 to below 1, it is a signal of the market losing momentum over time and that results in market correction.

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