Long fourth dimension readers of this spider web log are familiar amongst the proprietary indicator that I telephone telephone Demand as well as Supply. It is my favorite mensurate of stock marketplace position momentum; the cumulative running full of Demand minus Supply is a staple of my weekly indicator updates as well as is my favorite overbought/oversold measure.
Demand is an index that captures the number of NYSE, NASDAQ, as well as ASE stocks that unopen inwards a higher house the volatility envelopes surrounding their short-term moving averages. Supply assesses the number of those issues closing below those envelopes. The thought is that stocks amongst potent upside or downside momentum volition unopen exterior their envelopes. By creating an index of the number of stocks amongst potent as well as weak momentum, nosotros arrive at a feel for the momentum of the stock marketplace position every bit a whole.
As noted inwards "Introduction to Trading" posts.
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