Deemer Breakaway Momentum Thrust

The Deemer Breakaway Momentum Thrust indicator identifies rare market breadth thrusts by calculating the 10-day ratio of NYSE advances to declines to signal powerful shifts in market momentum.

Usage

The Usage of the Deemer Breakaway Momentum Thrust is centered around identifying high-conviction market entries based on broad participation. When the histogram rises above the horizontal threshold line (set at 1.97), a "Breakaway Momentum" signal is triggered.

This signal is historically rare and suggests that buying pressure is so overwhelming across the exchange that a new sustained uptrend is likely beginning. Traders typically use this as a macro-confirmation tool for bullish regimes rather than a frequent scalp signal.

Details

The concept of "Breakaway Momentum" was developed by Walter Deemer in the 1970s. It focuses on market breadth—the internal strength of the market—rather than just price action. The calculation involves:

1. Summing the total number of advancing stocks on the NYSE over the last 10 trading days.
2. Summing the total number of declining stocks on the NYSE over the same 10-day period.
3. Dividing the 10-day advances by the 10-day declines.

A reading greater than 1.97 indicates that advances have outpaced declines by nearly double over a two-week period, representing a significant thrust that has historically preceded long-term bullish moves.

Settings

• Histogram Color: Adjusts the visual color of the bars representing the 10-day NYSE Advance/Decline ratio.
• Line Color: Adjusts the color of the horizontal thrust line representing the 1.97 threshold.

FAQ

What does a Breakaway Momentum signal indicate?

It indicates a significant surge in market breadth where advances significantly outweigh declines over a 10-day period, often signaling the start of a major new bull market or a powerful relief rally.

Why does the indicator use NYSE data?

The original calculation by Walter Deemer was specifically designed for the New York Stock Exchange (NYSE) to capture a broad view of the US equity market's internal health.

How can I access Deemer Breakaway Momentum Thrust?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.