Absolute Breadth Index for Amibroker (AFL)

The Absolute Breadth Index (ABI) is a market momentum indicator that was developed by Norman G. Fosback. The ABI shows how much activity, volatility, and change is taking place on the New York Stock Exchange while ignoring the direction prices are headed. You can think of the ABI as an “activity index”. High readings indicate market activity and change, while low readings indicate lack of change. In Mr. Fosback’s book, Stock Market Logic, he indicates that historically, high values typically lead to higher prices three to twelve months later.