BCI Indicator

#momentum #oscillator  

This indicator simply counts how many days the market closed higher versus how many days it closed lower over a rolling window. The result is a single line that goes up when bullish days outnumber bearish days, and down when the reverse is true. It strips away price and volume and just tells you which side is winning the daily battle. 

Default period: 20 days 

Line behavior: Moves up and down around zero. Positive means more up days; negative means more down days. 

Useful readings: When the line is high and rising, bullish sentiment is dominant. When it’s low and falling, bearish sentiment is in control. Extreme readings can warn you that sentiment is overextended and a reversal may be near. 

Objective rules: 

– Line rising = bullish days are increasing 

– Line falling = bearish days are increasing 

– Line above its average = short-term bullish bias 

– Line below its average = short-term bearish bias 

– Crossover through zero = shift in session dominance

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.