 |
|
The New Highs New Lows indicator (NH/NL) is the difference between the number of stocks reaching new 52 week highs and the number of stocks reaching new 52 week lows on a daily basis, often reaching an extreme low just before a the market bottoms out. Used in a divergence fashion, it can indicate both bullish or bearish signs because the market as a whole may still be making new highs, but the number of stocks contributing to this rise is actually falling. The NH/NL oscillates around zero - if positive, the market is bullish, if negative, bearish. Many traders trade as the New Highs New Lows indicator passes thru the zero point, helpful when confirming a trend. Day trading techniques involving this indicator are limited. To calculate the New Highs New Lows indicator, take the difference between the number of stocks that made new 52 week highs and the number of stocks that made new 52 week lows. |
|
|||||||||||||
