The Hindenburg Omen was a proposed charting pattern, named after the Hindenburg disaster of May 6, 1937.
The pattern functions on a combination of technical factors that attempt to measure the health of the NYSE, and by extension, the stock market as a whole. The goal of the indicator is to signal increased probability of a stock market crash.
The rationale is that under “normal conditions” a substantial number of stocks may set either new annual highs or new annual lows, but not both at the same time. As a healthy market possesses a degree of uniformity, whether up or down, the simultaneous presence of many new highs and lows may signal trouble.
Theoretically, it could be applied to any stock exchange.
The daily number of NYSE new 52-week highs and the daily number of new 52-week lows are both greater than a threshold (proposed at 2.8%)
On Tuesday TradeGuider Systems will be launching the new Wyckoff / Williams stock trading investment strategy that uses options as a hedge when buying or selling common stock. The strategy is discussed in the latest book on how to trade and invest using Wyckoff / VSA entitled “Supercharge Your Trading & Investment Account With Wyckoff / Volume Spread Analysis” by Danny Younes which I highly recommend.
Below is the webinar from Monday 15th May 2017
The above excerpt was produced by Gavin Holmes – CEO of TradeGuider Systems LLC
Have a great day and I wish you consistent profits
Professional Investor & VSA Expert
Have an excellent trading day
Professional Investor and VSA Expert
Author of Supercharge Your Trading & Investment Account Using Wyckoff / Volume Spread Analysis