This “rush buying” following one or more days of “panic selling” is normally a manifestation of those short the market having to buy stocks to cover their short positions. Shortly after such a sequence of panic measurements, a stock market bottom reversal would be signified by a day when advancing stocks exceeded declining stocks by more than 4-to-1 (advancing stocks made up more than 80% of stock movement) and similarly for points gained. The research posited that during significant market declines, panic would manifest itself as one or more days when declining stocks exceeded advancing stocks by more than 9-to-1 (declining stocks made up more than 90% of stock movement) and when points lost made up more than 90% of total points movement. Desmond from Lowry’s Research published a seminal paper titled “ Identifying Bear Market Bottoms & New Bull Markets” ( download) This concept measured market breadth, namely daily advancing stocks as a % of advancing and declining stocks as well as points gained as a % of points gained and lost. So it will work on NQ The Lowry buy-the-dip Indicatorby RecessionALERT on OCTOin RESEARCH PAPERS Anybody has the Lowry Up Down Volume Ratio?
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