This content is provided in support of the Safety in the Market (SITM) module for Your SOFTWARE and may not be applicable to your package. For more information, go to the Modules topic of this help.
Thermometer
The thermometer can be uses as an earlywarning device for a change in the trend. It will provide an indication of the mode (or momentum) of the market.
Maximum readings in either direction indicates momentum in that direction. Higher readings, i.e. closer to +5 or –5 indicate that the current trend, is strengthening and will probably continue. Lower readings indicate that the trend is losing momentum, or is weakening, and may reverse.
By comparing the thermometer's reading to the actual movement of the market you can develop a “feel” for how the temperature is changing, hence the name Thermometer.
Calculation and Display
The Thermometer considers a number of price differences between the previous and current day and calculates a value between +5 and –5. The values are plotted on either side of the zero line, generally using a histogram.
The following three price comparisons are made, values assigned to the results and the results totaled and plotted for each interval:
Current Close to Previous Close
The Current Closing price for the current interval (CC) is compared to the Previous Closing price for the previous interval (PC).
The following table is used to determine how much weighting should be added to the Thermometer for this component of the calculation:
If  CC  is greater than  PC  then add  + 2 
If  CC  is less than  PC  then add   2 
If  CC  is same as  PC  then add  0 
Current Close to Current Open
The Current Closing price for the current interval (CC) is compared to the Current Opening price for the current interval (CO).
The following table is used to determine how much weighting should be added to the Thermometer for this component of the calculation:
If  CC  is greater than  CO  then add  + 2 
If  CC  is less than  CO  then add   2 
If  CC  is same as  CO  then add  0 
Current Range to Previous Close
The Current Range (Current High (CH)  Current Low (CL)) is compared to the Previous Closing price for the previous interval (PC).
The following table is used to determine how much weighting should be added to the Thermometer for this component of the calculation:
If
 Current Range (ie. PC is less than CL)  is entirely above the
 PC
 then add
 + 1

If
 Current Range (ie. PC is greater than CH)  is entirely below the
 PC
 then add
  1

If
 Current Range (ie. PC is in between CH and CL)  includes in its range the
 PC
 then add
 0

Thermometer Properties
Double left mouseclick on the thermometer graph or label to open the Thermometer Properties dialog box.
Plots tabbed page
The graph's style can be selected on the Plots tabbed page. Select from Histogram, Step or a variety of line styles (Solid, Dashes, Dots, Points). Color and Weighting can also be adjusted.
Scale Settings and Scale Appearance tabbed pages
The appearance and location of the +5 to –5 scale can be adjusted on these tabbed pages.
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 Square of Nine
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