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
Açık kaynak kodlu komut dosyası
Gerçek TradingView ruhuyla, bu komut dosyasının mimarı, yatırımcıların işlevselliğini inceleyip doğrulayabilmesi için onu açık kaynaklı hale getirdi. Yazarı tebrik ederiz! Ücretsiz olarak kullanabilseniz de, kodu yeniden yayınlamanın Topluluk Kurallarımıza tabi olduğunu unutmayın.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
Açık kaynak kodlu komut dosyası
Gerçek TradingView ruhuyla, bu komut dosyasının mimarı, yatırımcıların işlevselliğini inceleyip doğrulayabilmesi için onu açık kaynaklı hale getirdi. Yazarı tebrik ederiz! Ücretsiz olarak kullanabilseniz de, kodu yeniden yayınlamanın Topluluk Kurallarımıza tabi olduğunu unutmayın.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.