The Bullish Percent Index was made in the 1950s by Abe Cohen. Then in the 1970s and 1980s, it was polished by Earl Blumenthal and Mike Burke, respectively. It is a simple indicator that demonstrates half a dozen clearly defined signals valuable in day trading. These signals include the bull alerts, bear alerts, bull confirmed, bear confirmed, bull correction and bear correction.
Getting the BPI is not hard. To get the BPI, divide the number of stocks on P&F purchase signals by the all-in-all amount of stocks. On a Point and Figure chart, a particular stock is plotted which has a logarithmic scale of 2% and a classic three-box reversal. Samples are available at day trading blogs.
When a Bullish Percent Index is viewed falling under 30% but then goes up to form a brand-new X line, it reported to be a Bull alert in day trading. It is a day trader’s omen of a market improvement. A day…