The Tabajara Index was created by the famous Brazilian trader Professor André Machado, one of the greatest technical analysts in Brazil.
It has been created to identify market trends with a higher level of confirmation.
Logic of the algorithm:
- Verifies if the last 2 candles are green.
- Verifies if the closing price of the last candle is higher than the previous candle.
- Verifies if the SMA 20 is trending up.
- Pre-configured for the candle of 1h.
- Fires when all the conditions are met.
- For additional confirmation, traders can combine the Tabajara Index with a volume increase indicator. Volume is an essential aspect of analyzing market trends and can provide further validation for potential bullish movements indicated by the Tabajara Index.