Bounce Strength Indicator (BSI) shows the strength of bounce according to the Wyckoff method.
After a move higher, the stock moves into a flat consolidation with a clear support level. Chartists should watch action closely as prices approach support. A high volume surge off support, also known as a springboard, is the first sign that the bigger uptrend is set to continue and a consolidation breakout is imminent.
How to measure the strength of bounce?
Strength of bounce up from lows:
(close - low ) * ( ceiling - low ) / range spread
Strength of bounce down from highs:
(high - close) * ( high - floor ) / range spread
My measuring method means the following:
This idea is simple, but it can become a leading indicator of the range breakout. It will work only within range.
The Acceleration/Deceleration Indicator (AC) measures acceleration and deceleration of the current driving force.Average Directional Movement Index (ADX)
The Average Directional Movement Index Indicator (ADX) helps to determine if there is a price trend.