Unsustainable Movements

Unsustainable Movements is an indicator that automatically identifies explosive price patterns that have a high probability to be interrupted or even reversed (speculative bubbles).

An unsustainable movement can be defined as a phase that has a high probability to be reversed (local bubble) or, at least the growth rate of the movement to slow down.

The indicator is formed by a main tendency and two extreme variation channels:

  • Point a) represent the moment when the pattern is identified and displayed on the chart
  • Point b) represent the start of the movement
  • Point c) represent a possible critical extreme point forecasted by the model. The entire movement from the moment of detection until the critical point is highlighted, for a better representation, with a darker color

  The moment when the price break below the lower channel can be seen as an early alert that the growth rate of the movement may slow down or even the entire movement can collapse if the context is favorable.

The break below the lower channel of the indicator becomes more probable as the price is advancing closer towards the critical extreme point, as the variation channels become tighter, adding to the pressure of a break.

Unsustainable Movements indicator parameters:

History Bars – represent the number of past prices in which you can check the performance of the indicator.

Color settings – you can change the display color of the indicator by changing the Ascending and Descending Movements Parameters.

Reference Levels Settings – is a feature that is highlighting the indicator key points. You can activate this feature by changing the Reference Level Display Parameter. You can also modify the display of this feature by changing the Reference Level Color and Width Parameters.

Notification Settings – you can pick how you want to be notified in real time when a new Unsustainable Movement is detected by changing the Notification Settings Parameters.