HYG/LQD closed down by -0.21% to 0.65 on 23 January 2021 and +-0.8% on a weekly basis. HYG/LQD momentum was last calculated at +100.0/100 indicating positive momentum. HYG/LQD trend is +75.0/100 indicating a positive trend. HYG/LQD momentum exhaustion is 0.21873 indicating HYG/LQD is oversold.HYG/LQD RSI is 62.59 .
HYG/LQD closed at 0.65 on 23 January 2021. HYG/LQD trend was last calculated at +75.0/100 (range: -100 to +100) indicating a positive trend based on MacroVar models. HYG/LQD momentum was last calculated at +100.0/100 (range: -100 to +100) indicating positive momentum. HYG/LQD momentum exhaustion is 0.21873 (normal range: -2.5 to +2.5, overbought values: greater than 2.5, oversold values: less than 2.5) indicating HYG/LQD is oversold and a possible reversal is imminent. HYG/LQD RSI was last calculated at 62.59. HYG/LQD moving averages were last recorded as follows: 1-month moving average: 0.63239 in an uptrend , 1-quarter moving average: 0.62908 in an uptrend and 1-year moving average: 0.63126 in a downtrend. HYG/LQD annual return was last recorded at None%, daily return was last recorded at -0.21%, and weekly return was last recorded at -0.8%. HYG/LQD histrorical 20-day volatility was last recorded at 3.26311%, HYG/LQD alpha None, HYG/LQD beta None and HYG/LQD maximum drawdown was recorded at None%. MacroVar models monitor HYG/LQD statistics based on historical data since 1970.
Momentum trading is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVar HYG/LQD momentum signal ranges from -100 to +100. The
HYG/LQD momentum signal is derived as the mean value from 4 calculations for the China Import Dry Bulk Freight Index CDFI. The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. HYG/LQD return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1.
HYG/LQD BADI momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when
HYG/LQD momentum signal moves from positive to negative value or vice-versa.
HYG/LQD trend signal ranges from -100 to +100. HYG/LQD trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. HYG/LQD Closing price vs
HYG/LQD moving average (MA) calculation: If
HYG/LQD is greater than HYG/LQD MA value is +1, else -1, 2. HYG/LQD Moving average slope calculation: if current
HYG/LQD moving average is higher than the previous MA,
HYG/LQD upward slope +1, else -1
HYG/LQD trend model can be used as a trend strength indicator.
HYG/LQD trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when HYG/LQD trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The HYG/LQD 52-week simple moving average and its slope are the most important indicators defining a market’s trend.
HYG/LQD is in an uptrend when HYG/LQD price is higher than the 52-week moving average and the
HYG/LQD 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the
HYG/LQD oscillator and HYG/LQD RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
The HYG/LQD oscillator estimated by MacroVar is the z-score of the current
HYG/LQD price versus HYG/LQD 1-year simple moving average price. The formula for the
HYG/LQD oscillator is:
HYG/LQD oscillator = (Current Price – 250 trading days
HYG/LQD simple moving average price) / (250 days HYG/LQD price standard deviation)
HYG/LQD oversold conditions
HYG/LQD is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the
HYG/LQD is oversold it is often due for a rebound. Values of the
HYG/LQD oscillator lower than -2.5 signify oversold conditions. It must be noted that the
HYG/LQD oscillator must be analyzed ibn conjunction with the rest of
HYG/LQD quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the
HYG/LQD overbought conditions
HYG/LQD is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the
HYG/LQD is overbought it is often due for a correction. Values of the
HYG/LQD oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the
HYG/LQD quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
HYG/LQD RSI Indicator
The RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when HYG/LQD is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. During
HYG/LQD uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
MacroVar calculates HYG/LQD returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is: