Calculation of the Absolute Breadth Index (ABI) formula (ID: 234) [Edit]
Description of the Calculation of the Absolute Breadth Index (ABI) formula
This formula allows the calculation of the Absolute Breadth Index (ABI) for an equity market or a group of shares.
Formula
\[ ABI = \frac{ \vert N_{adv} - N_{dec} \vert } { N_{adv} + N_{dec} } \ \]
Symbols
\(N_{adv}\ \)
Number of advancing shares
\(N_{dec}\ \)
Number of declining shares
Calculation example
Let us consider for example a stock market where 450 shares are listed. In one session, the prices of 290 shares rose and the prices of 160 shares fell.
The ABI would thus result as: |290-160|/450 = 0.29 or 29%.
In another session, 130 shares rose and 320 shares fell. The ABI for that session is: |130-320|/450 = 0.42 or 42%.