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Keith McCullough, founder and CEO at Hedgeye Risk Management, explains that he is measuring the rate of change in trading volume relative to the average volume over a specific trade duration.
This approach highlights the importance of comparing current trading activity to historical averages within a defined timeframe.
McCullough has previously stated that he has called every major market crash since 2008, emphasizing the importance of timing in his approach to trading here. He has also noted that 72 percent of stocks gained an average of 1.8 percent during a recent market period, with many gains occurring outside consensus positions here. These observations reflect a continued focus on quantitative signals and historical comparison in his analysis.