Elastic Level: Meats
To enhance trading efficiency, investors need to evaluate and view the Meat markets with perspective. Are the markets at an extreme level and likely to reverse? Having perspective can save an investor from buying at market tops or selling at market bottoms. The Elastic indicator is designed to pinpoint over bought (OB) and over sold (OS) territory. Like a rubber band, a market can reverse at varying degrees. The Elastic indicator therefore has three different definitions for short-term OB and OS levels; Modest, Strong and Extreme.
Elastic Level (EL) Descriptions:
- Extremely Over Bought (OB) / Over Sold (OS) +/- 12
- Strongly Over Bought (OB) / Over Sold (OS) +/- 8
- Modestly Over Bought (OB) / Over Sold (OS) +/- 4
- Neutral market between +4 and -4
Elastic Levels: Meat Futures (Live Cattle and Lean Hogs)
