The Sector Bell Curve - DWA Sector Distribution Curve

Description
The Sector Distribution Curve is created by taking the vertical axis of percentages, 0% to 100%, and flipping it to the horizontal axis. Then, we simply place the sector symbol above the point on the horizontal scale which correlates to its bullish percent chart. This provides a terrific composite picture of risk in the overall market since the sectors make up the market. If most of the sectors are above the 50% level and skewed to the right hand side, that means they are residing in the "Red Zone" or higher risk area of their bullish percent charts and we can conclude that risk in the overall market is high. Conversely, if most sectors are skewed to the left hand side of the curve we say this is an oversold or low risk condition


A bell curve is a visual representation of normal data distribution, in which the median represents the highest point on the curve, with all other percentiles skewing lower on both sides. The shape of this graph looks like a bell, hence the name. Symmetrical bell curves are an important tool in finance and investing.



A bell curve is a type of graph that is used to visualize the distribution of a set of chosen values across a specified group that tend to have a central, normal values, as peak with low and high extremes tapering off relatively symmetrically on either side.