The Homma Mswing Score
The Breadth Template Series: Part 1
Welcome to the Breadth Template series.
A series of articles discussing all the Trend-Momentum templates through which you can gauge the Trend and Momentum of the market. These are essentially breadth indicators.
We will discuss the following ones:
The Homma Mswing Score.
The Landry Trend Score.
The Minervini Trend Template.
In this article, I will discuss the Homma Mswing Score:
Link to the Mswing Score Breadth Dashboard
Link to Explainer Video on Mswing Indicator
Homma Mswing Score:
Mswing is a momentum score. It is the sum of the rate of change of price over a 20- and 50-year period.
The Mswing score is a breadth indicator. It plots the percentage of stocks with Mswing equal to or above 0 in the NSE universe.
When Mswing of a stock cross 0 (positive), the stock is now in a positive basal momentum.
Hence Mswing is a Basal Momentum indicator.
And Mswing score is an oscillator.
The values oscillate between 0 and 100%.
Values above 50 mean markets have a bullish bias, while below 50 mean markets have a bearish bias.
More important is the slope of the plot.
The positive slope is bullish, while the negative slope is bearish.
One can also use it to see oversold and overbought levels.
A value of 80 and above could mean an overbought market.
Meanwhile, a value of 20 or below could signal an oversold market.
The plot shows the market approaching an oversold level.
Markets often bounce from these levels.
However, confirm the bounce before acting on it.
An early confirmation is the plot crossing above its 5-DMA.
Link to the Mswing Score Breadth Dashboard
Here is an article if you want to deep dive into HOW to read Market Breadth and WHY is it important.
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