Wednesday, March 28, 2012

Current status of Market Health.

We have been "healthy" for several months. Here is a refresher using the current SPY candle structure on how I calculate when and how the system could flip back to unhealthy mode...

Click to enlarge. Any questions, ask away!!


  1. The visual really helps.

    What I'm curious about is how you decided on ten bars. Is it the result of backtesting or some other methodology?

    1. It comes directly from something I read years ago from Investopedia. Using SPY rather than the Naz was a modification I made after backtesting.

  2. thank for detail explanation. I was using last 10days high and low to determine market health. it is pretty much close to yours.