TIP Factors — What They Mean & How To Use Them

TIP combines four core dimensions — Trend, Breadth, Volatility, Liquidity — into a composite market pulse. Each factor is scaled 0–100 and the final regime band is derived from level + alignment. Scores closer to 100 are more favorable for swing-long setups (with proper risk control); lower scores warn to reduce exposure or sit out.

• Trend: multi-horizon momentum & slope.
• Breadth: participation across stocks and sectors.
• Volatility: execution friendliness (calmer is better).
• Liquidity: participation depth and ease of entry/exit.

Trend blends short, medium, and long horizons (e.g., EMA clusters, SMA50/200 relationship, and range structures). Alignment across horizons boosts confidence; divergence reduces it.

• Short-term: EMA10 vs EMA20, slope, range position.
• Medium-term: price vs SMA50, SMA50 slope, %days > 50DMA.
• Long-term: price vs SMA200, SMA200 slope, 50/200 cross.

Breadth tells you if the move is broad-based or narrow. Strong breadth suggests durability; weak breadth warns of fragility.

• A/D % + Slope
• % Above Moving Averages
• High–Low (52w)
• Up/Down Volume
• Narrowness (EW vs CW)
• Sector Breadth

We translate realized daily volatility into a desirability score (higher = calmer = easier to execute). Very high realized vol typically hurts breakout reliability and fills; calmer regimes reward disciplined adds and trailing.

Liquidity reflects participation (volume, up-vol vs down-vol, dispersion). It informs position sizing and how aggressively you can add without excessive slippage.

A/D % = Advancers ÷ (Advancers + Decliners). We smooth it and track its short momentum. Rising A/D with values > 55% confirms broad buying; persistent dips < 45% warn of distribution risk.

A smoothed proxy derived from A/D momentum that tracks how many stocks sit above key moving averages. 50DMA carries the most weight for swing context; 20/200 provide short/long framing.

Net 52-week Highs minus Lows normalized by the active universe. A rising, positive series indicates leadership broadening; expanding new lows are an early caution.

Sum of up-volume vs down-volume across the universe. When up-volume consistently exceeds 60–65%, breakouts and follow-through improve. Sub-40% suggests pressure.

Compares an equal-weight index to a cap/volume-weighted proxy. If EW leads, participation is broad; if CW dominates, leadership is narrow and more fragile.

% of sectors above their 50DMA or similar composite. More sectors participating = healthier uptrends; narrow sector leadership raises risk of rotation hits.