Bullish Percent Index (BPI): Measure Market Breadth with Point and Figure Rules

What is the Bullish Percent Index (BPI)?

Developed by Abe Cohen in 1955 and popularized by Earl Blumenthal, the Bullish Percent Index is one of the oldest and most respected market breadth indicators. Unlike market-cap weighted price indices that can be pulled higher by a handful of mega-cap stocks, BPI treats every stock equally. It measures the raw proportion of stocks in an index that have confirmed technical breakout patterns on standard Point and Figure charts.

How to calculate the Bullish Percent Index

The formula for calculating the Bullish Percent Index is straightforward, but it requires evaluating the Point and Figure chart state for every stock in the index universe. A stock is classified as on a P&F Buy signal when its most recent double-top breakout column of Xs exceeds its prior high column of Xs.

Interpreting BPI zones and market regimes

Traders and portfolio managers divide the Bullish Percent Index into key threshold levels to determine whether the broader equity market is in a healthy uptrend, a vulnerable blow-off top, or an oversold accumulation zone.

• Overbought Zone (>70%): When BPI exceeds 70%, over 70% of stocks are in technical uptrends. While this confirms strong momentum, extreme readings warn that upside fuel is running low.
• Oversold Zone (<30%): When BPI falls below 30%, less than 30% of stocks hold buy signals. Historically, drops below 30% followed by a turn higher mark high-probability market bottoming zones.
• The 50% Bull/Bear Line: Readings above 50% indicate that bulls control the majority of index components. Crosses below 50% warn of broad deterioration.
• Column Reversals (Xs vs Os): Charting BPI itself as a P&F chart reveals offense (column of Xs rising) versus defense (column of Os falling), providing clear macro regime filters.

Bullish Percent Index in TradingView

In TradingView, traders can display official index breadth symbols (such as BPSPX or BPNDX) directly on their charts if provided by their data package. For traders tracking custom watchlists or proprietary baskets, Pine Script v6 allows you to construct custom breadth proxies that calculate the percentage of basket stocks trading above key moving averages (such as the 50 SMA or 200 EMA) or showing bullish technical ratings.

• Official ticker lookup: Search for BPSPX (S&P 500 BPI) or BPNDX (Nasdaq 100 BPI) in TradingView symbol search.
• Relative strength comparison: Overlay BPI over SPY or QQQ to spot divergences where the index makes new highs while BPI makes lower highs.
• Custom watchlist breadth: Code multi-symbol Pine Script indicators using request.security() to measure the percentage of stocks in your watchlist meeting bullish criteria.
• Regime filtering for strategies: Use index breadth status as an execution gate to prevent long strategies from entering during broad market selloffs.

Limitations and practical considerations

While the Bullish Percent Index is an exceptional macro sentiment tool, traders must consider its structural characteristics when planning tactical execution.

• No direct real-time execution signals: BPI is a regime filter, not a trade timing trigger for individual stocks. Pair BPI with localized price action setups.
• P&F reversal lag: Point and Figure box reversals filter noise, but this smoothing means BPI turns after major market pivots are already underway.
• Universe updates: Index composition changes require constant component tracking to maintain accurate historical percentages.
• Data source requirements: Official real-time Point and Figure breadth feeds require dedicated market data subscriptions.