Bullish Percent Index (BPI)

A breadth indicator derived from the percentage of stocks on P&F Buy signals.

What Is the Bullish Percent Index?

The Bullish Percent Index (BPI) is a breadth indicator based on the number of stocks on Point & Figure Buy Signals within an index. The BPI helps you understand the internal health of an index by looking at the number of components that are on a bullish or bearish track.

Abe Cohen developed the indicator in the mid-1950s. The Bullish Percent Index was originally applied to NYSE stocks. Cohen was the first editor of Chart Craft, which later became Investors Intelligence. Earl Blumenthal further refined BPI signals in the mid-70s and Mike Burke in the early 80’s. Because a stock is either on a P&F buy or sell signal, there is no ambiguity when it comes to P&F charts. This makes BPI a straightforward indicator with clearly defined signals. We’ll look at six different Bullish Percent Index signals derived from Point & Figure charts: bull/bear confirmed, bull/bear alerts, and bull/bear correction.

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