Shinohara Intensity Ratio (SIR)

8 may 2022

Shinohara Intensity Ratio (SIR) - the indicator

This indicator is used to make clear the intensity of the trend. It shows the possible trend of the price. If the price is in an uptrend or in a downtrend, the indicator shows when you can buy or sell or get out. A good example can be seen in the chart with natural gas, a few days earlier it was already seen that a trend reversal was imminent. Shinohara indicator has already indicated it a few days before.

SIR preset

Period: last 26 periods
Strong ratio: green line "GL"
Weak ratio: red line "RL"

What shows you SIR indicator

• It has two lines. The strong ratio line is colored in green and the weak ratio line in red.
  
• When the "GL" is above the "RL", this is the indication of price is an uptrend. When the "RL" is above the "GL", it indicates the price in the downtrend.
  
• The increasing of ratio is the sign of trend intensity is increasing. In the high value of the SIR indicator trend reversal may soon.
  
  
• SIR indicator line is around 100, this indicating the intensity of the price is average.
  
• SIR line is above 120, the intensity of starting a strong trend
  
• SIR line is above 200 or more this indication of the extreme intensity of the trend
  

Using Strategy

• Buy Signal: "GL" is rising above the 120 and the "RL" is below the 100 level
  
• Sell Signal: "RL" is rising above the 120 level and the "GL" is below 100 level
  

When the "GL" & "RL" (both lines) are rising above 120 or more then you should avoid taking any position

You can take profit or close your position, if the indicator line moving above the 200 level, then you should alert. If the price trend starts reversing, then you can close your position.