Dip Index

The Dip Index (DIPX) is a market breadth oscillator that measures the percentage of assets within a selected index or asset class trading above a specified moving average—such as the 50, 100, 150, or 200-period moving average.

While commonly applied to equities, the indicator is adaptable to various financial instruments, including exchange-traded funds (ETFs), commodities, cryptocurrencies, and even fixed-income securities.

• Assess the overall health of a market by measuring internal participation in price moves.

• Detect overbought or oversold conditions when momentum becomes concentrated or overly extended.

• Generate actionable signals when the index exits extreme levels, suggesting renewed momentum or potential exhaustion.