OPEN-SOURCE SCRIPT
Zweig Breadth Thrust (ZBT) Complete Validation
Zweig Breadth Thrust (ZBT) – Full Validation (Pine Script v6)
This script implements the classic Zweig Breadth Thrust (ZBT) indicator and adds a full validation layer to objectively identify complete signals based on Martin Zweig’s original rules.
⸻
🔎 What it measures
The ZBT tracks market breadth momentum:
• Ratio of advancing vs declining stocks:
ADV / (ADV + DECL)
• Smoothed using a 10-day EMA
It captures a rapid transition:
from oversold conditions → to broad market participation
⸻
⚙️ Signal logic (Zweig rules)
The script automatically validates the full signal:
1. Setup (oversold)
• ZBT drops below 0.40
2. Time window
• A 10 trading day window is triggered
3. Thrust (confirmation)
• ZBT must rise above 0.615 within that window
⸻
📊 States displayed
• 🔴 Setup
Market in oversold condition (< 0.40)
• 🟡 Setup Active
Countdown window in progress
• 🟢 VALID ZBT
Fully confirmed signal (high statistical significance)
• 🟠 Near Miss
Indicator approached the trigger but failed to confirm
• ⚫ Setup Expired
No confirmation within the allowed window
⸻
📈 Interpretation
• VALID ZBT
A rare signal historically associated with:
• Strong bullish phases
• Broad-based participation (not just mega caps)
• Near Miss
Typically reflects a short-term bounce rather than a structural shift
⸻
🧠 Practical use
This indicator is designed as:
• A risk-on / risk-off timing tool
• A confirmation of market regime change
• A complement to fundamental and technical analysis
⸻
⚠️ Notes
• Intended for daily timeframe
• Uses market breadth data (ADV / DECL), which may vary depending on TradingView data feeds
• Based on the original methodology by Martin Zweig
⸻
🧭 Use cases
Particularly useful for:
• Portfolio management
• Tactical asset allocation
• Confirming rallies after market corrections
This script implements the classic Zweig Breadth Thrust (ZBT) indicator and adds a full validation layer to objectively identify complete signals based on Martin Zweig’s original rules.
⸻
🔎 What it measures
The ZBT tracks market breadth momentum:
• Ratio of advancing vs declining stocks:
ADV / (ADV + DECL)
• Smoothed using a 10-day EMA
It captures a rapid transition:
from oversold conditions → to broad market participation
⸻
⚙️ Signal logic (Zweig rules)
The script automatically validates the full signal:
1. Setup (oversold)
• ZBT drops below 0.40
2. Time window
• A 10 trading day window is triggered
3. Thrust (confirmation)
• ZBT must rise above 0.615 within that window
⸻
📊 States displayed
• 🔴 Setup
Market in oversold condition (< 0.40)
• 🟡 Setup Active
Countdown window in progress
• 🟢 VALID ZBT
Fully confirmed signal (high statistical significance)
• 🟠 Near Miss
Indicator approached the trigger but failed to confirm
• ⚫ Setup Expired
No confirmation within the allowed window
⸻
📈 Interpretation
• VALID ZBT
A rare signal historically associated with:
• Strong bullish phases
• Broad-based participation (not just mega caps)
• Near Miss
Typically reflects a short-term bounce rather than a structural shift
⸻
🧠 Practical use
This indicator is designed as:
• A risk-on / risk-off timing tool
• A confirmation of market regime change
• A complement to fundamental and technical analysis
⸻
⚠️ Notes
• Intended for daily timeframe
• Uses market breadth data (ADV / DECL), which may vary depending on TradingView data feeds
• Based on the original methodology by Martin Zweig
⸻
🧭 Use cases
Particularly useful for:
• Portfolio management
• Tactical asset allocation
• Confirming rallies after market corrections
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.