Deemer Breakaway Momentum Thrust
Jan 16, 2023
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:
- Summing the total number of advancing stocks on the NYSE over the last 10 trading days.
- Summing the total number of declining stocks on the NYSE over the same 10-day period.
- 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.
Trading & investing are risky and many will lose money in connection with trading and investing activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools and strategies, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content, tool, or platform feature we provide.
Charts used on this site are by TradingView in which the majority of our technical indicators are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
Market data is provided by CBOE, CME Group, BarChart, Massive, CoinAPI. Select U.S. equities data is provided through Massive. CBOE BZX real-time U.S. equities data is licensed from CBOE and provided through BarChart. Real-time futures data is licensed from CME Group and provided through BarChart. Select cryptocurrency data, including major coins, is provided through CoinAPI. All data is provided “as is” and should be verified independently for trading purposes.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2026 LuxAlgo Global, LLC.