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The Confidence In Quality Index or CQI
The The Confidence In Quality Index or CQI is a stock market condition indicator based on NYSE Advancing Issues and Declining Issues. It is a type of Overbought / Oversold indicator. The goal was to create an indicator that would reflect periods of elevated market anxiety or elevated complacency.

When the Index is low, near or below 1, the market is considered to be highly anxious. When the index is high, it reflects complacency.

The Confidence in Quality Index was conceived and developed by Jim Patterson CMT, in the early 2000's.

Calculation
ABS(Net) Over Total

Interpretation
High is complacent Low is Anxious

Principles
Jim posited that if the daily value for the advance decline line is large, positive or negative, then that suggests portfolio managers or PMs are unhappy with their current portfolios. For example, if a mutual fund, which typically remains close to fully invested, is unhappy with a portfolio then the manager will be forced to sell one or more stock, pushing them down while also buying one or more stocks to replace whatever was sold. When a If a PM is content with their portfolio then there will be no need to make any changes. In the event that a change is needed it is more likely to be a sell this for that transaction, which has a muted impact on the indicator.