• Term Definition
• Hindenburg Omen

Hindenburg Omen

• January 29, 2020
• Team Kalkine

Hindenburg Omen is named after the Hindenburg disaster that occurred on 6 May 1937 when Germany’s Hindenburg airship crashed. The term was devised and promoted by James R. Miekka. Hindenburg Omen is a technical indicator designed to predict the risen probability of stock market crashes. It evaluates the percentage of new 52-week highs and new 52-week lows to a preset reference percentage in order to predict the growing chances of a market crash.

The Hindenburg Omen gets activated on meeting following three circumstances including-

1. The new 52-week highs and 52-week lows on NYSE is higher than 2.2% of all the securities traded on that day. However, new 52-week highs must not be higher than double the number of new 52-week lows.
2. The ten-week NYSE index’ moving average is mounting.
3. Negative McClellan Oscillator which is an overbought/oversold indicator.