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