The so called shorting potential is again the second time lower and the commercials are stocking up their long positions. Addiotionally we have Indian Celebration and Marriage season upcoming.
After calculating the strenght of selling interest I place it against the buying interest which gives me this ratio.
Basically a value over 1.00 happens within a downtrend and a value under 1.00 happens in a uptrend.
Current value > last value = downtrend
current value < last value = uptrend
If we can monitor how the value is going down from week to week like in this case, we can see where it will go next. We have a value over 1.00 within this current downtrend but it goes towards 1.00 which means that we could enter a real uptrend which is way more than just a correction wave.
The algorith itself should stay my secret ;)