The Hindenburg Omen

The Hindenburg Omen is a dreaded technical indicator that can signal an impending stock market crash (the indicator has been stumbled prior to past crashes, yet it is known for generating false up-sides).
The Hindenburg Omen is just legitimate in a rising market - - as estimated by the NYSE composite rolling average throughout the course of recent weeks; the number of stocks at a 52-week high must not be over two times those stocks at a 52-week low, and the Hindenburg set of prophetically calamitous conditions must happen two times in a 30-day period.
In August of 2010, the Hindenburg indicator has been stumbled two times inside a 30-day period, stirring the interest of financial specialists, traders, and investors the same.

Highlights

• In practice, the Hindenburg Omen isn't generally right, yet it very well might be utilized with different forms of technical analysis to choose when now is the ideal time to sell.
• The Hindenburg Omen is a technical indicator that was intended to signal the increased likelihood of a stock market crash.
• It looks at the percentage of new 52-week highs and lows to a foreordained reference percentage.