Market Barometer Indicator

(available for Tradestation, Microsoft Excel, and Metastock!)

The Market Barometer indicator was developed by Ben-Aroya, and is an exceptional measure of short-term

market sentiment. It not only gives an overbought/oversold reading, and it is semi-predictive for the future in that it gives the probabilities for higher highs being reached. That is, if the indicator makes a higher high, it predicts that the market will eventually do the same, and thus a trader can look to buy the next oversold bottom in the market for a move to higher price levels. Similarly, if the market is making lower lows - and the indicator is not - it suggests that a sharp rally is due! For example, on the chart below at the March, 2009 bottom the indicator was registering a solid divergence - thus suggesting that a sharp rally was coming!

Below is another chart example. On 04/09/09 the indicator made a higher high. This implied 2 things; (1) price should make a higher high soon, and  (2) the indicator is overbought (indicating a correction was due). What happened? Price corrected for just 2 trading days - and then the SPX went to a new high (from 841.50 to 875.63) in just 3 trading days!:

As well on the chart above, at the 875.63 swing high seen on 04/17/09 the indicator was registering a strong divergence against price. This implied a short-term correction was coming; this did occur, taking the SPX down from a high of 875.63 down to a low of 826.83 (a decline of approximately 5.6%!)

The Market Barometer indicator is available below for Tradestation and for Metastock

Price is $99.00

Once the payment is confirmed through PayPal we will email you the files and the short user manual

that accompanies them.