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
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。