What does a Thrust Oscillator handle regarding stock volume?

A Thrust Oscillator is designed to analyze stock volume by examining both advancing and declining volume in relation to market activity. It measures the momentum of price movements, taking into account the volume associated with stock price increases (advancing volume) and decreases (declining volume). This dual focus allows traders to recognize shifts in market sentiment and strength behind price movements, which can be crucial for making informed trading decisions.

By incorporating both types of volume, the Thrust Oscillator provides a more complete picture of market dynamics than an oscillator that focuses solely on advancing or declining volume. This comprehensive assessment helps in identifying bullish or bearish trends based on the strength of price movements alongside the volume supporting those movements. Understanding this relationship is essential for technical analysts when interpreting chart patterns and determining potential entry or exit points in their trading strategies.