I was toying with such an idea of Bullishness-Bearishness Divergence indicator, which has a quick detection capability, for quite some time and now I am near to the final touch in configuring it.
It looks like this.
See Fig 1.
Now look at the trend lines 1, 2 and 3. All of them diverging each other. You can see that the next day DOW fell (Red candle).
I am testing it with the next batch of candlesticks. See fig 2. You can see that the green,, violet and red lines ( 4, 5 and 6) are more and more downward slopping. The line #6, is the simulated one for today’s action. This show that the bearishness is increasing and the potential Low for today could around 9950
We will see how well it works. Just thought of sharing this with you all.
Remember that it is in testing mode and may need more trimming of the formulae.
Disclaimer: The views expressed herein are to be used with your own discretion and neither analyst nor the publisher will be responsible for the outcome.
