Education & Information
Bullish Percent Charts
The NASDAQ BP Chart – Interpretation
There are two levels of analysis on the NASDAQ BPI.
- Direction
- Position
DIRECTION
- A rising percentage is recorded with Xs
- Xs indicate demand is stronger than supply on the NASDAQ
- Our market approach toward the NASDAQ is aggressive
- Your overall approach should be to grow your portfolio
- A declining percentage is recorded with Os
- Os indicate supply is stronger than demand on the NASDAQ
- Our market approach toward the NASDAQ is defensive
- Your overall approach should be to protect your portfolio
POSITION
- Usually near the middle of the chart close to 50%
- Extremes are 70% and 30%
- Reversals from the extreme levels indicate major turning points for the NASDAQ
- 70% is a high-risk level in the NASDAQ
- A reversal down from 70% is a major sell signal for the NASDAQ
- Manage your portfolio defensively in this market (risk management)
- 30% is a low-risk level for the NASDAQ
- A reversal up from below 30% is a major buy signal for the NASDAQ
- Manage your portfolio aggressively in this market