Zahorchak Measure: A Weighted Market Breadth Trend Oscillator

Summary

The Zahorchak Measure combines several trend checks on the NYSE Composite with a breadth signal derived from NYSE advances, declines, and unchanged issues. It assigns positive or negative points according to whether the index is above or below short, medium, and long moving averages, whether those averages are ordered bullishly or bearishly, and whether the advance-decline line is above or below its own average. User-set weights combine the component scores, which are normalized and smoothed with an exponential moving average. The author presents readings above zero as an upward market bias and readings below zero as a downward bias, potentially informing stock or ETF exposure.

The script offers timeframe, smoothing, point-value, and weighting controls. Its description explains that it adapts earlier versions by using the NYSE Composite and daily-scaled averages, and that smoothing may reduce whipsaws while adding lag. It provides no performance statistics or validation results, and the author suggests exploring levels beyond zero. The indicator is a market-bias tool rather than a tested entry and exit system.

Key ideas

• The measure scores price and moving-average relationships alongside NYSE advance-decline breadth.
• Weighted component scores are normalized and smoothed into an oscillator.
• The author interprets positive readings as bullish market bias and negative readings as bearish bias.
• Smoothing may reduce whipsaws while making the indicator slower to respond.
• The document provides a construction method but no quantified performance evidence.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.