Vladimir B, a trader from Brazil has accomplished a unique feat - he created the New High - New Low Index for Brazil. As far as we know, this is the first time that a trader outside the US has created this index for his country.
You may enlarge these images by clicking on them.
Vladimir's accomplishment proves that technical analysis is a universal language. The signals you see on these charts can be interpreted just as we interpret US NH-NL charts. The weekly chart shows a sharp downspike - an area of mass capitulation, which is a buy signal for the forthcoming rally. The daily chart shows a massive bearish divergence prior to the 2008 top. I only wish I had this chart in hand when I traveled to speak in Brazil in July 2008 - the bearish message leaps at you from the chart. On the other hand, the bullish divergence near the right edge calls for a rally.
Congratulations Vladimir, and best wishes!
Alex Elder
Valdimir, very impressive work, indeed. I'm looking forward to putting this into play. Any chance you can post these occasionally as updates?
ReplyDeleteThanks again.
Grant
Vladimir, this is really great! Especially it proves that it can be done! - I’d love to do it for the German DAX (corresponds to DJIA) and especially the TecDAX (index of technology companies). Could you please kindly share with me how you did it “technically”? And does it update itself in some way automatically via a software? – Again: congratulations!
ReplyDeleteRodryk
Grant,
ReplyDeleteThank you very much for the interest.
I am very happy to know that these charts from Brazil may be useful to you.
Due to this interest, I will try hard to be able to post these charts in a weekly basis, initially.
I will try to post them early in the weekends, like Friday night or Saturday in the morning. If you prefer other day, just tell me and I will change the date.
In the future, if the interest persists, I will try harder to post the data in a daily basis and improve the chart formatting.
By then, I will have found an easier way to update the data. Today, I have to do it manually and the large amount of data fights with the capacity of the Excel and Access softwares.
Please let me tell that I am very happy to contribute to the site. It's an unexpected happy surprise that I can contribute with these charts!
This is the minimum I should do in a small retribution for all the profound knowledge you, experienced investors – and I have an special admiration for Mr. Elder books – passed and pass to your readers, with complete truly intention to teach us.
Always, Thank You!,
Vladimir Bergier, from Brazil