# Advanced Market Breadth Analysis Tool AI Agent Connect

> Advance/Decline Percentage Calculator analyzes market breadth, sentiment classification, and trend divergence. This MCP gives you high-precision metrics to gauge overall market health. You can calculate fundamental market breadth metrics and sentiment classification, determine the percentage of stocks above their 20-day moving average, and identify potential trend reversals by comparing cumulative breadth against price movements. It's essential for deep technical analysis.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_qZ9DCs6Q5HP0lCmUGjDtcjPMBe6tAdXo8GaYCCVl/ai-agent-connect
- **Tags:** market-breadth, stock-market, technical-analysis, financial-metrics, trend-divergence

## Description

Market breadth is a key indicator of market health. Instead of just looking at the index, you need to know if the underlying market structure supports the current price action. This MCP provides the tools to calculate advance, decline, and net breadth percentages, giving you a clear picture of market sentiment. You can quickly assess if the market is genuinely strong or if the movement is based on limited participation. By combining fundamental breadth metrics with technical status checks, you get a multi-layered view that helps confirm or challenge your current trading thesis. It's designed for serious traders who need reliable, quantifiable data to guide their decisions.

## Tools

### analyze_trend_divergence
Evaluate the relationship between cumulative breadth and price movement to spot potential trend reversals.

### calculate_market_breadth
Determine fundamental market breadth metrics and classify overall market sentiment (e.g., Strong Bullish, Bearish).

### calculate_technical_breadth_status
Find the percentage of stocks that are technically bullish, specifically those above their 20-day moving average.

## Prompt Examples

**Prompt:** 
```
Calculate the market breadth for 100 advancing, 50 declining, and 50 unchanged stocks out of a 200 stock universe.
```

**Response:** 
```
The advance percentage is 50%, the decline percentage is 25%, and the net breadth percentage is 25%. The market sentiment is Neutral.
```

**Prompt:** 
```
What is the technical breadth if 75 stocks are above their 20-day moving average in a 100 stock universe?
```

**Response:** 
```
The technical breadth is 75%.
```

**Prompt:** 
```
Check for divergence between a cumulative breadth series [10, 12, 15] and a price series [100, 98, 95].
```

**Response:** 
```
A bullish divergence is detected because the cumulative breadth is rising while the price is falling.
```

## Capabilities

### Market Sentiment Check
Use this MCP to classify overall market sentiment based on advance and decline percentages.

### Technical Strength Gauge
Determine the percentage of stocks that are technically bullish using the 20-day moving average.

### Reversal Detection
Analyze trend divergence by comparing cumulative breadth data against price movements.

### Net Breadth Calculation
Calculate the net breadth percentage to measure overall market participation.

### Fundamental Metrics
Get fundamental metrics that quantify the number of advancing and declining stocks.

## Use Cases

### Pre-Market Analysis
Before the open, check the market breadth to see if the advance/decline ratio suggests strong buying interest.

### Confirming a Trend Reversal
When price action stalls, run a divergence check to see if cumulative breadth suggests a shift is coming.

### Sector Rotation Strategy
Compare the technical breadth status of different sectors to pinpoint which areas are gaining bullish momentum.

### Validating a Breakout
After a major index breakout, run the market breadth calculation to confirm if the move is supported by broad participation.

## Benefits

- You get a multi-metric view of market health, combining fundamental counts with technical averages.
- The tool identifies divergence patterns, alerting you when price action might contradict underlying market strength.
- It provides clear sentiment classifications, moving beyond simple 'up' or 'down' market calls.
- You can calculate the exact percentage of stocks meeting specific bullish technical criteria.

## How It Works

Connecting this MCP gives your AI client immediate access to advanced financial metrics. You simply prompt your agent with the required data points, and the tool returns the calculated metrics and sentiment.

1. Connect your preferred AI client to the Vinkius catalog.
2. Reference the Advance/Decline Calculator MCP in your prompt.
3. Provide the necessary data (e.g., advancing/declining stock counts, price series).
4. Your agent executes the calculation and returns the calculated breadth, status, or divergence signal.

## Frequently Asked Questions

**What is the difference between market breadth and technical breadth?**
Market breadth uses fundamental counts (how many stocks are up vs. down). Technical breadth uses specific metrics, like checking how many stocks are above their 20-day moving average, which is a technical indicator.

**How do I use the divergence tool?**
You need to provide two series of data: a cumulative breadth series and a corresponding price series. The tool then evaluates if the two movements contradict each other.

**Can this MCP tell me if a stock will go up?**
No. This MCP provides metrics and signals based on historical data and market structure, helping you gauge probability. It does not predict future price movements.

**What does 'Neutral' sentiment mean?**
Neutral sentiment means the advance and decline percentages are relatively balanced, suggesting the market lacks strong directional conviction at that moment.