--- title: "Percent of Stocks Below 200-Day Moving Average: Formula, Meaning & Signals" description: "The percentage of stocks in an index or universe whose latest close is below their own 200-day moving average. It focuses on the weak side of long-term..." canonical: https://www.getswoopr.com/indicators/breadth/percent-of-stocks-below-200-day-moving-average/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > The percentage of stocks in an index or universe whose latest close is below their own 200-day moving average. It focuses on the weak side of long-term trend breadth. A high value means most stocks are in long-term downtrends and a falling value means the damage is being repaired. # Percent of Stocks Below 200-Day Moving Average: Formula, Meaning, Signals, Examples and How to Use It ## How Is Percent of Stocks Below 200-Day Moving Average Calculated? The percentage of stocks in an index or universe whose latest close is below their own 200-day moving average. It focuses on the weak side of long-term trend breadth. **Formula:** `% below 200-day = stocks with close below their 200-day moving average / total stocks x 100` **Inputs:** - Daily closes for every stock in the universe - 200-day moving average for each stock - Constituent list **Worked example.** If 175 of 500 stocks close below their 200-day averages, the reading is 35.0%. The inputs are illustrative numbers, not market data. **Reading it.** A high value means most stocks are in long-term downtrends and a falling value means the damage is being repaired. It is read alongside the percent above the 200-day average. **Limits.** Stocks that close exactly on the average belong to neither group, so the above and below figures can fail to add to 100 percent. The measure lags because the average is long. ## What is Percent of Stocks Below 200-Day Moving Average? The percentage of stocks in an index or universe whose latest close is below their own 200-day moving average. It focuses on the weak side of long-term trend breadth. ## How to use Percent of Stocks Below 200-Day Moving Average A high value means most stocks are in long-term downtrends and a falling value means the damage is being repaired. It is read alongside the percent above the 200-day average. A reading alone is never a buy or sell signal; it needs context from price structure, volume, volatility and the broader market regime. ## Strengths - Counting the share beneath the long average gives the weakness side directly, which is useful for screening periods when deterioration is widespread. - It uses the same data as the above-200 version, so one pass over closing prices and averages produces both complementary series. - Reproducible when the formula and data convention are fixed. ## Weaknesses and limitations - A broad bounce of a few percent can push many stocks back over their lines at once, so the share can fall quickly even if most remain weak by long-term standards. - It rises in bear markets and in sharp one-day drops alike, so a high share does not distinguish a long decline from a short break. - Correlated indicators can create false confidence by repeating the same underlying information. ## Editorial and risk note This page is educational content, not individualized investment advice. It should not imply guaranteed prediction, accuracy or outperformance. ## Frequently Asked Questions Is Percent of Stocks Below 200-Day Moving Average a buy or sell signal? No. A high value means most stocks are in long-term downtrends and a falling value means the damage is being repaired. Stocks that close exactly on the average belong to neither group, so the above and below figures can fail to add to 100 percent. A trade built on it still needs a trigger, an invalidation rule, a position size and realistic execution assumptions. What is the best setting for Percent of Stocks Below 200-Day Moving Average? Percent of Stocks Below 200-Day Moving Average takes these inputs: daily closes for every stock in the universe; 200-day moving average for each stock; constituent list. There is no universal best setting for the tunable ones, so test them across instruments, regimes and out-of-sample periods and favor stable parameter regions over one historical winner. Can Percent of Stocks Below 200-Day Moving Average be used by itself? Stocks that close exactly on the average belong to neither group, so the above and below figures can fail to add to 100 percent. The measure lags because the average is long. For that reason it is read next to measures of direction, participation, valuation, liquidity and risk, not alone. Does Percent of Stocks Below 200-Day Moving Average work on every timeframe? The calculation (% below 200-day = stocks with close below their 200-day moving average / total stocks x 100) can be run on any bar size, but behavior is not portable: a reading on a five-minute chart describes a very different market window from the same reading on a daily chart. Validate the exact timeframe before relying on it. Why does Percent of Stocks Below 200-Day Moving Average give false signals? A broad bounce of a few percent can push many stocks back over their lines at once, so the share can fall quickly even if most remain weak by long-term standards. It rises in bear markets and in sharp one-day drops alike, so a high share does not distinguish a long decline from a short break. Lag, noise and regime changes add to this, because market participants react to new information after the reading is calculated. How should Percent of Stocks Below 200-Day Moving Average be backtested? Rebuild Percent of Stocks Below 200-Day Moving Average from daily closes for every stock in the universe using point-in-time data, write the rules before testing, include delisted securities where relevant, model realistic fills and costs, reserve a validation sample and compare with a simpler baseline. S Swoopr Editorial Team The Swoopr Editorial Team produces independent investment education, research, and tools for understanding markets, evaluating opportunities, and managing risk. All content is educational only and does not constitute personalized investment advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).