LQD/TLH closed down by -0.36% to 0.9 on 23 January 2021 and +-1.47% on a weekly basis. LQD/TLH momentum was last calculated at +0.0/100 indicating positive momentum. LQD/TLH trend is +50.0/100 indicating a positive trend. LQD/TLH momentum exhaustion is 1.20498 indicating LQD/TLH is oversold.LQD/TLH RSI is 58.8419 .
LQD/TLH closed at 0.9 on 23 January 2021. LQD/TLH trend was last calculated at +50.0/100 (range: -100 to +100) indicating a positive trend based on MacroVar models. LQD/TLH momentum was last calculated at +0.0/100 (range: -100 to +100) indicating positive momentum. LQD/TLH momentum exhaustion is 1.20498 (normal range: -2.5 to +2.5, overbought values: greater than 2.5, oversold values: less than 2.5) indicating LQD/TLH is oversold and a possible reversal is imminent. LQD/TLH RSI was last calculated at 58.8419. LQD/TLH moving averages were last recorded as follows: 1-month moving average: 0.86412 in a downtrend , 1-quarter moving average: 0.84557 in an uptrend and 1-year moving average: 0.81449 in a downtrend. LQD/TLH annual return was last recorded at None%, daily return was last recorded at -0.36%, and weekly return was last recorded at -1.47%. LQD/TLH histrorical 20-day volatility was last recorded at 4.9479%, LQD/TLH alpha None, LQD/TLH beta None and LQD/TLH maximum drawdown was recorded at None%. MacroVar models monitor LQD/TLH 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 LQD/TLH momentum signal ranges from -100 to +100. The
LQD/TLH 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. LQD/TLH 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.
LQD/TLH BADI momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when
LQD/TLH momentum signal moves from positive to negative value or vice-versa.
LQD/TLH trend signal ranges from -100 to +100. LQD/TLH 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. LQD/TLH Closing price vs
LQD/TLH moving average (MA) calculation: If
LQD/TLH is greater than LQD/TLH MA value is +1, else -1, 2. LQD/TLH Moving average slope calculation: if current
LQD/TLH moving average is higher than the previous MA,
LQD/TLH upward slope +1, else -1
LQD/TLH trend model can be used as a trend strength indicator.
LQD/TLH trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when LQD/TLH trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The LQD/TLH 52-week simple moving average and its slope are the most important indicators defining a market’s trend.
LQD/TLH is in an uptrend when LQD/TLH price is higher than the 52-week moving average and the
LQD/TLH 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
LQD/TLH oscillator and LQD/TLH RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
The LQD/TLH oscillator estimated by MacroVar is the z-score of the current
LQD/TLH price versus LQD/TLH 1-year simple moving average price. The formula for the
LQD/TLH oscillator is:
LQD/TLH oscillator = (Current Price – 250 trading days
LQD/TLH simple moving average price) / (250 days LQD/TLH price standard deviation)
LQD/TLH oversold conditions
LQD/TLH is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the
LQD/TLH is oversold it is often due for a rebound. Values of the
LQD/TLH oscillator lower than -2.5 signify oversold conditions. It must be noted that the
LQD/TLH oscillator must be analyzed ibn conjunction with the rest of
LQD/TLH 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
LQD/TLH overbought conditions
LQD/TLH is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the
LQD/TLH is overbought it is often due for a correction. Values of the
LQD/TLH oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the
LQD/TLH 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.
LQD/TLH 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 LQD/TLH is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. During
LQD/TLH 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 LQD/TLH returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is: