A market sentiment indicator tracking the percentage of SET50 stocks hitting 52-week lows, helping identify potential market bottoms and buying opportunities during extreme fear.
Explore complementary indicator rolesHow it works
The indicator systematically monitors the daily closing prices of 40 selected SET50 stocks, tracking which stocks close at their lowest point over the past 252 trading days. It calculates the percentage of stocks making new 52-week lows, providing a comprehensive view of market-wide performance and sentiment.
By establishing specific threshold levels at 30%, 33%, and 50%, the indicator helps traders visualize different stages of market stress and potential buying opportunities. These thresholds are color-coded to quickly communicate the severity of market conditions, with each level offering a distinct interpretation of market sentiment.
Why it may be useful
This signal is crucial for understanding market-wide sentiment and identifying potential long-term investment opportunities during periods of extreme market fear. By providing a systematic approach to measuring widespread market weakness, traders can make more informed decisions about potential entry points and market reversals.
The indicator's historical analysis shows that significant spikes in stocks making new lows often coincide with major market bottoms, offering valuable insights for contrarian investors seeking to capitalize on market overreactions and potential recovery periods.
When to explore it
The indicator is most effective during periods of significant market stress and potential capitulation, where a large percentage of stocks are experiencing simultaneous declines. Traders should pay close attention when the indicator crosses the 30% and 33% thresholds, as these levels suggest emerging market challenges and potential buying opportunities.
The signal is particularly valuable for long-term investors and swing traders looking to identify potential market bottoms and entry points during extended market downturns. It works best when used in conjunction with other technical and fundamental analysis tools to confirm market sentiment and potential reversal signals.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
