1) Bull market. Stock in uptrend.
2) Recent sharp fall in price, usually several black candles - to shakeout the weaker players.
3) MACD-H is at its lowest point since the start of the rally/uptrend, signalling the severity of the shakeout.
4) When it turns green, hopefully the shakeout is over and stock can shoot up now that the weaker holders are gone.
CDL Hospitality (start Aug):
SATS (start Aug):
The current selloff is caused by SIA shareholders selling - should I play it now? Such abnormal selling may be distorting the chart.
See Hup Seng: