Shinohara Intensity Ratio (SIR) indicator is used to tell you, the intensity of the stock trend .
it will show you the direction of the share price. also, When the share is in uptrend or in the downtrend the indicator will show when to buy, sell, and when to exit from the stock.
Shinohara Intensity Ratio Setting
- Period: The default period is 26. this means to calculate this indicator, the 26-period stock price will take.
- Strong Ratio: I have set the Strong ratio line color to the Green line.
- Weak Ratio: and the Weak Ratio line color is the RED line.
What SIR indicator tells you
- It has two lines. the strong ratio line is Green and the weak ratio line is Red.
- When the Green line is above the Red Line, this is the indication of the share price is an uptrend.
- When the Red Line is above the green line, it indicates the share price in the downtrend.
- The Increasing of the value of the line is the sign of trend intensity is increasing. in the high value of the Shinohara Intensity Ratio indicator trend reversal may soon.
- If the SIR indicator line is around 100,this indicating the intensity of the share price is average.
- If the SIR line is above 120, this the intensity of starting a strong trend.
- If the SIR line is above 200 or more this indication of the extreme intensity of the trend.
Shinohara Intensity Ratio Trading Strategy
- Buy Signal: If the Green Line is rising above the 120 and the Red Line is below the 100 level. you can buy the stock here.
- Short Sell Signal: If the Red Line is rising above the 120 level and the Green line is below 100. you can take a short sell position.
- you can take profit or exit from the stock, if the indicator line moving above the 200 level then you should alert, if the share price trend starts reversing, then you can exit from the stock.
*When the Green and Red both lines are rising above 120 or more then you should avoid taking any position.
Conclusion
Shinohara Intensity Ratio (SIR) indicator helps to tell you, the share price trend and how strong the trend is. or in other words, it will tell you the intensity of the trend.
*Read Related Post For More Information.