What is market gauge?
Market gauge is a tool which proposes possible action for investors after calculating current market sentiment. Currently, the tool calculates many indicator values such as moving averages, Relative Strength Index, MACD, Average Directional Index, etc. in multiple timeframes such as daily, weekly etc. and combine it with our in-house AI model built with fundamental, technical and timeseries analysis.
The following picture shows what the tool does at different stages of market movement:
Change in Market Gauge with change in Price Action
The first image shows strong sell signal as the market is coming down from a previous rally.
On the second image, the market sentiment changes. We can see the price action forms a hammer candle. At the same time, we also have a divergence in RSI, which also co-incides with MACD signals converging with each other. All of this happens in a strong support region. On top of all these traditional signals, our AI model also issues a neutral signal from bearish signal. When all these bullish signal lines up, we wait for a confirmation to the upside.
On the third image, we get our confirmation. All the signals concur with each other and the market gauge switches to STRONG BUY. We then see a strong upward movement of more than 10%.
Our software calculates all the indicators and support resistance levels in multiple timeframes and combines with AI model built by training on historical NEPSE data. This helps ShareBazarNepal viewers to stay up-to-date with the market. Additionally, there are some other techniques to effectively use this tool which is explained in other related articles. Last but not the least, past performance doesn't guarantee future results, hence we urge our readers to do their own diligence and that this is just our opinion and not an investment advice.