RADAR 1^TM is a histogram which compares the relationship between price changes and volume changes to measure the ratio of buying strength to selling strength. This tells us whether the Bulls or the Bears are in control at any particular point in time. It is an excellent oscillator for divergence analysis and for identifying trend persistence, and works in real time on charts in any time frame, either intrabar or end-of-bar.

When RADAR 1^TM is in the green zone, buying pressure exceeds selling pressure and the Bulls are in control. The height of green upward-pointing RADAR 1 histogram bars is an indicator of the strength of the Bulls’ buying pressure. Conversely, if the RADAR 1^TM oscillator line is in the red zone, selling pressure exceeds buying pressure and the Bears are in control. The depth of the red downward-pointing RADAR 1^TM histogram bars is an indicator of the strength of the Bears’ selling pressure.

RADAR 1^TM serves as an excellent turning point indicator in all kinds of markets, as it usually begins to turn before the price does. It generally reveals the exhaustion of the Bulls/Bears while the price is still moving up/down of its own momentum. If a sudden move in price is not confirmed or anticipated by a similar move in RADAR 1^TM, it usually means a fake-out swing and represents a move to be ignored or faded.

RADAR 1^TM often creates a characteristic "double peak" or "double valley" pattern prior to a major price reversal. On the other hand, if the pattern is a smooth up-and-down curve uninterrupted with a minor dip, the chances are that the existing trend will continue further.

When a RADAR 1^TM valley is shallower than its predecessor while the price corresponding to the most recent RADAR 1^TM valley is lower than the price corresponding to the previous RADAR 1^TM valley, a diverging condition has occurred which generally signals an imminent price reversal to the upside. Conversely, when a RADAR 1^TM peak is lower than its predecessor while the price corresponding to the most recent RADAR 1^TM peak is higher than the price corresponding to the previous RADAR 1^TM peak, a diverging condition has occurred which generally signals an imminent price reversal to the downside.

RADAR 1^TM has one input, ALRTLEVL, which defines the cutoff value at which an alert is triggered. If ALRTLEVL is set to 1, for example, an alert is triggered when RADAR 1 ^TMcrosses above 1 or crosses below –1.

Available On:

TradeStation

MultiCharts