© 2020, O’Reilly Media, Inc. All trademarks and registered trademarks appearing on oreilly.com are the property of their respective owners. I drew "buy" arrows when the S&P 500 rose above its 50-day moving average, but only if the 10-day moving average of the NH-NL indicator was above zero. This demonstrates that most of the market is marching together, and the market as a whole is technically healthy. I am going to use this info to create a new high - new low index. Notice that while the market kept hitting its lows, the amount of stocks hitting 52-week lows decreased. Amortization Schedule Calculator: What Is the Repayment Schedule for My Mortgage? Our chart above this week compares the S&P 500 Index with the 20-day, 50-day and 100-day moving averages of NYSE daily new high/new low ratios using daily-close data since January 2, 2015. The New Highs-New Lows is calculated by simply taking the difference between the number of stocks that made new 52-week highs and the number of stocks that made new 52-week lows. Русский 中文 Español Deutsch 日本語 Português. The high low index is a version of the indicator which uses a 10-day average of the record high percent. The chart below shows an instance of bullish divergence. So post a link to it -let others appraise it, You liked the script? Travel Insurance: Protection from Your Worst Trip Nightmares, How to Pick the Best Life Insurance Policy. New High/Lows PO = 100 * (New Highs - New Lows) / (Number of stocks in the index) Again, the modified PO formula above could be difficult in use with indexes that have big number of stocks in their baskets (NYSE Composite, Nasdaq 100 Composite, Russell 3000, Russell 2000 , Russell 1000 and etc.) No exploration only indicator. It is calculated by dividing new highs by the summation of new highs and new lows, multiplying it by 100 and then plotting a 10 day Simple Moving Average (SMA) of that series to smooth out the values. The indicator is derived by dividing the number of new highs by the number of new highs plus new lows. it a smoothed version of the Record High Percent. Bullish or bearish divergence can occur in one of two ways. The result is graphed, and the aggregate number of new highs and new lows is used as a market timing tool. The following chart shows the S&P 500 and a 10-day moving average of the NH-NL indicator. How to Choose the Best Credit Card for You, 5 Devastating Mistakes That Turn 0% Credit Cards into Nightmares, Lower Your Credit Card Interest Rate with These Magic Words, How to Find a Personal Loan with the Best Rate, Using Leverage and Debt to Juice Your Investment Strategy, Good Debt: The 5 Best Reasons to Borrow Money, How to Create Your Own Loan Amortization Calculator. Is This The Ultimate Value Investing Model? The New Highs-New Lows is calculated by simply taking the difference between the number of stocks that made new 52-week highs and the number of stocks that made new 52-week lows. Terms of service • Privacy policy • Editorial independence.