OB/OS indicator

Hi all,
i found this calculation statement for an Overbought/Oversold indicator.

"The Overbought/Oversold indicator is a 10-period exponential moving average of the difference between the number of advancing and declining issues."

Not quite understand by the " difference between the number of advancing and declining issues" and as per formula below.

the formula as attached.


Any suggestion on other good OB/OS indicators?

thanks heaps.

There are many many indicators available and each has their own variation. And OB/OS may not always imply OB/OS, it might just imply that the market is catching its breath.

I think what you are talking about is the market range (forget the exact name of indicator - ADX?) in terms of how many stocks are moving up and how many stocks are moving down. This will work for indices but may not work for individual stocks.

It is a big list of indicators which can give you OB/OS. Start with the common ones ... RSI, Stochastics, % Williams ... best might be to look for "oscillators" on this website or stockcharts / investopedia.

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