Hindenburg Omen Signals This Week

Discussion in 'Trading' started by MKTrader, Oct 19, 2007.

  1. For the last three days. This is one "crash indicator" that's actually been quite accurate.


    This site gives its past performance of the Omen through Sep 2005. It had just given a signal before a 5-6% decline in early October.


    Since the time that article was written, it's given signals two times: once in April 2006 (before summer '06 drop) and multiple signals in June of this year...
  2. " Oh my god this is the most horrendous thing... the calamity, the calamity oh nooooooo. Nooooo. Noooo. "

    Certainly interesting stuff I am always hungry for these types of edges.
    I guess the first question is who has added everything up and who has confirmed that all the criteria have been met?
    >That the daily number of NYSE new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of total NYSE issues traded that day.
    >That the smaller of these numbers is greater than 79.
    >That the NYSE 10 Week moving average is rising.
    >That the McClellan Oscillator is negative on that same day.
    >That new 52 Week Highs cannot be more than twice the new 52 Week Lows (however it is fine for new 52 Week Lows to be more than double new 52 Week Highs). This condition is absolutely mandatory.

    The last one is most interesting and ambiguous. Does that mean number of new highs must not double the number of new lows-- that would be a fairly constant pattern in the market not a flashing indicator... yet it's uses here to avoid missing bull markets I imagine and is worth more thought....
  3. Nice Work Joe. I was hoping your mug would pop up but only a very rudimentary chart did. Interesting to note that this Hindenberg Indicator did not work once between 1985 and 97' and post 97 has been deadly accurate. What changed in the market I wonder? I would like you to tighten up the scan period to 1997-2007 and see how accurate this indicator has become! ~ stoney

    Trading Out Of Cape Cod! My oh my.
    Beer Lobster Chocolate! Sweet.
  4. This is the best I could get it runs till 2006
  5. According to the link I included, Hindenburg flashed a signal about a month before the '87 crash and also before declines in 89, 90, 94, etc. I haven't verfified these myself, but I'm sure others have.