Hindenburg Omen

Dear viewers / Traderji ,
Heard today that the Indian Stock Markets have generated a HINDENBURG OMEN signal ( which means a signal of CRASH & which also means " SELL AT ONCE ") . Is it true ? Does METASTOCK has this type of INDICATOR ? Please , explain the same . Views WELCOME .
Hindenburgh Omen has not been applied to Indian Indices. So anyone claiming it is wrong. It has always been applied to DJIA historically.
I came to know about this at other websites like safeheaven.com and others three four months back for us idices. Intersestingly, there was no crash
in the us markets then .
Mohan said:
What is this Hindenburg Omen??
I had just read about this recently.

The core idea behind it is that it's bearish whenever there are a large number of both new 52-weeks highs and new 52-week lows which I do not see this here at the moment.

Why would a large number of both new highs and new lows be bearish?

According to Peter Eliades, editor of the Stockmarket Cycles newsletter: "Under normal conditions, either a substantial number of stocks establish new annual highs or a large number set new lows - but not both." When there are high levels of both, "it indicates that the market is undergoing a period of extreme divergence... Such divergence is not usually conducive to future rising stock prices. A healthy market requires some semblance of internal uniformity, and it doesn't matter what direction that uniformity takes. Many new highs and very few lows is obviously bullish, but so is a great many new lows accompanied by few or no new highs. This is the condition that leads to important market bottoms."

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