Market Thermometer Jr
The Market Thermometer can be used to help traders identify sleepy or turbulent periods.
It helps beginners to check when is the ideal time to enter operations, that is, when the value of the thermometer is below its average for several periods, identifying a peaceful market.
When the market is heated, that is, the thermometer is above three times its average, it is time to make profits.
The Thermometer measures the extent to which the end of a period, maximum or minimum price, projects outside the range of the previous period.
The thermometer bar is:
- Red: when the thermometer's value is below average;
- Green: when the thermometer's value is above average;
- Black: when the thermometer value exceeds 3 times the average;
- Arithmetic Average of the Thermometer (Standard 22);
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Edson Cavalca Junior System Analyst