The bullish and bearish willingness ratio (BR) measures the strength of the market's willingness to buy and sell by comparing the upward and downward momentum of stock prices over a period of time. The core idea is that when the highest price of the day is higher than the previous day's closing price (i.e. HIGH - CLOSE[1] > 0), it indicates that there is buying momentum in the market; conversely, when the lowest price of the day is lower than the previous day's closing price (i.e. CLOSE[1] - LOW > 0), it indicates that there is selling momentum in the market.

The value of the BR indicator reflects the relative strength of the long and short forces in the market:

• High BR value: indicates that the market has strong upward momentum and the bullish forces are dominant, which may indicate that the stock price has the potential to rise further.

• Low BR value: indicates that the market has strong downward momentum and the bearish forces are dominant, which may indicate that the stock price has the risk of further decline.

Common application scenarios of the BR indicator:

1. Combined with the AR indicator: The BR indicator is usually used in conjunction with the sentiment indicator (AR). When both BR and AR fall sharply, it may indicate that the stock price has reached the top and is about to fall. Investors should consider reducing their positions or leaving the market. On the contrary, if both BR and AR are at a low level, it may indicate that the stock price has bottomed out and investors can consider buying on dips.
2. Judgment of market reversal: When the BR indicator rises rapidly and the AR indicator is in consolidation or a small decline, it may indicate that the stock price is in an upward trend. When the BR indicator falls from a high level and the decline is large, it may indicate that the stock price is about to reverse.
3. Assist in judging the timing of buying and selling: When BR is greater than AR and then turns less than AR, it may be a buy signal. When the BR indicator reaches a peak and falls sharply, you can also consider buying at a low price and wait for the stock price to rebound.

Notes:

• The BR indicator is a technical indicator with a certain lag and should not be used as the only basis for investment decisions.
• The performance of the BR indicator may vary in different market environments. Investors should conduct a comprehensive analysis in combination with other indicators and market information.
• The choice of parameter N will affect the sensitivity of the BR indicator. Investors should choose the appropriate parameter value according to the specific situation.

**Risk Warning: **

• The BR indicator is calculated based on historical data and cannot guarantee the accuracy of future forecasts. Investors should refer to it with caution and do a good job of risk management.