DEFINITION OF ‘HINDENBURG OMEN’
A technical indicator named after the famous crash of the German airship of the late 1930s. The Hindenburg omen was developed to predict the potential for a financial market crash. It is created by monitoring the number of securities that form new 52-week highs relative to the number of securities that form new 52-week lows – the number of securities must be abnormally large. This criteria is deemed to be met when both numbers are greater than 2.2% of the total number of issues that trade on the NYSE (for that specific day).
Ment17-U r correct=the omen has many false alarms-where there is no crash but every crash has had one–get it? That’s what Seville said
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