The Hindenburg Omen is a composite indicator. i.e. it is made up of several indicators. The following criteria need to be met for the Hindenburg Omen to exists:
- The number of securities making new 52-week-highs should be above 2.2% of the total number of securities traded on the NYSE.
- The number of securities making new 52-week-lows should be above 2.2% of the total number of securities traded on the NYSE.
- The McClellan Oscillator must be negative
- The 50-day moving average must be rising
- New 52-week-highs are not more than twice new 52-week-lows
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