Absolute Breadth Index – ABI

In this page, you will learn what the Absolute Breadth Index is. Keep reading to find all the information you need.
Updated: Jan 20, 2023

What is Absolute Breadth Index?

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The term Absolute Breadth Index, abbreviated as ABI, is an indicator used to determine volatility in the market without regard to price direction. It is calculated by taking the absolute value of the difference between the number of bullish sessions and the number of bearish sessions. Usually, high numbers suggest that volatility is on the rise which would lead to wide swings in the asset price.

This tool is classified as a breadth indicator because it is created with net up/down values only.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.