Terms Beginning With 'h'

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.

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