The Absolute Breadth Index is a simple formula that takes the absolute value of the total number of advancing issues to declining issues. Traditionally, the NYSE has been examined, but this can be applied to any market. The higher the number the more volatility would be implied.

For Example: If there are 500 stocks trading below the open and 400 stocks trading above the open the absolute value would be 500-400 = 100.

If there were 650 stocks trading higher and only 50 trading lower the value would be 600.

The higher the number shows that at the current time period being examined that prices of issues are moving strongly in one direction. Whereas a low number would indicate that issues are moving in both directions so there is not a strong push in the market.