Shinohara Intensity Ratio indicator can be used to analyze between the strength of the stock of strong ratio and popularity of weak ratio. The strong ratio means that Strong Energy Level Ratio and weak ratio means that Strong Energy Level, Weak Popularity Ratio. However, this is a lesser known study and should be used only with a combination of other technical indicators.
The traders can know more about the Shinohara Intensity Ratio indicator, then they can find it in the STUDIES section of Zerodha Kite. This indicator also available in Kite mobile App. The Period is 26 and you can set the value of it high and low. You can also check how we attached the Shinohara Intensity Ratio Indicator in Reliance Industries share price chart. This indicator can be used on to any charts likes daily, weekly, monthly or intraday. However the best usage of this indicator can be seen onto the end of day charts.
Strong Ratio of Shinohara Intensity Ratio Indicator :
In this indicator no rise or fall signal between 20 and 120. Although at the levels between 150 to 300. In strong ratio, the stock is seen to be losing popularity and it can be used as a profit taking or exiting level.
Weak Ratio of Shinohara Intensity Ratio Indicator :
In popularity barometer, 100 is seen as the balanced level.
When the stock price rises by a large percentage from a low price, usually the weak ratio slowly rises from 150 to 300. When the indicator marks 200, it indicates that there is strong popularity for the stock, twice that of a weak popularity and that sign can be used as a profit taking or exiting level.
Buy signal of this indicator:
When weak ratio has been lower than the Strong Ration at the low position (between 40-70) then crosses the strong ratio at less than 70. The following link contains some more insight and usage of this indicator.
Categories: Technical Indicators