Best Small Cos. Generally, there is little price action until the sellers have been exhausted. Then buyers dominate and price tends to rise. The number of stocks or bonds or commodities which have advanced in a given time period compared to the number which have declined.
Daily observations are the most common.
The number of stocks advancing divided by the number of stocks declining over a particular time period. See Breadth Ratio. It is considered a bullish formation when volume increases on the ascending legs. When a breakout through the level of the highs is made, the pattern is completed. A new trend may develop as prices approach the intersection.