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!!
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3 comments:

  1. AlgyrosMarch 29, 2012 at 12:05 AM

    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?

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    Replies
    1. J-TraderMarch 29, 2012 at 11:44 AM

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

      http://www.investopedia.com/articles/technical/04/031004.asp

      Delete
  2. LT101March 29, 2012 at 9:49 PM

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

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