107 Elders Thermometer

Looks att he variation between the low and the prior low, and the high and the prior high, and selects the largest of the two. A moving average can be applied to the index to identify points, that are “hot”, or so call places where the price is trending considerably in one direction. When Market Thermometer rises above its moving average, it warns that the market is hot and slippage more likely.

Figure 12.11: Elders Thermometer