Headwind is an unique signal.
While a Stock is still going up, it tries to see if the uptrend is coming under pressure. When the stock is still moving down, it helps to see if downtrend is coming to an end.
How is that useful?
Profitable trades may be exited in timely manner. That is, if one has a Long (Short) trade in profit, upon appearance of Bearish (Bullish) Headwind, one may book profit.
Also, traders may initiate a Headwind Long or Short trade based on the Headwind Signal. To make it even higher probability trade, one may follow the checklist for Headwind Trade Set Up before taking a trade based on Headwind signal.
How has Headwind helped traders in past in India market? Below is a typical example. Based on Steel Authority of India Limited; a giant Steelmaker based in India.
It was pretty neat – wasn’t it? Traders love this signal. I always look for this signal in our Sonar result.
Is there any stock displaying this Headwind signal right now (as of 22nd Feb, Sunday evening)? Here is an example from USA market. In addition to Headwind, this (American Express) Stock displays several other interesting Superior Profit signals for a potential Swing and/or Long Term Trade.
What about Headwind in India Market?
There may be several in India market too. I leave finding those to your good hands.
Trade Profitably !