Registered User Joined: 5/29/2005 Posts: 11
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Administration
Joined: 9/30/2004 Posts: 9,187
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You cannot make your own new low vs new high indicators but we have a few pre-calculated for you in the T2 symbols.
T2105 High Low Logic Index
Developed by Norman Fosback, the Index is computed as the lesser of the number of new highs or new lows divided by the total number of issues traded. Daily or weekly NYSE data typically is used in the calculation.
The concept behind the indicator is that either a large number of stocks will reach new highs or a large number will establish new lows, but normally not both at the same time. Since the High Low Logic Index is the lesser of the two ratios, high readings are infrequent.
When a high indicator reading does occur, it signifies that market internals are inconsistent with many stocks reaching new highs at the same time that many stocks establish new lows. Such a condition is considered bearish for stock prices.
Extreme low indicator readings reveal a uniform market. They are considered bullish for stock prices.
T2117 52-week New High / New Low Ratio
This indicator is calculated as follows: new highs for the last 52 weeks divided by new highs + new lows. Another indicator which moves between 0 and 100, this one gets closer to 0 and 100 than some of the others. It’s a good overbought/oversold indicator as well as a good confirmation/non-confirmation indicator when you plot a moving average of it.
T2120 26-week New High/New Low Ratio
New highs for the last 26 weeks divided by new highs + new lows. Research results have revealed a bullish tendency at extreme high readings and a slightly bearish tendency at extreme low readings.
T2121 13week New High/New Low Ratio
New highs for the last 13 weeks divided by new highs + new lows. Research results have revealed a bullish tendency at extreme high readings and a slightly bearish tendency at extreme low readings.
T2122 4week New High/New Low Ratio
New highs for the last 4 weeks divided by new highs + new lows. Research results have revealed a bullish tendency at extreme high readings and a slightly bearish tendency at extreme low readings.
T2123 Cumulative 4week New High/New Low
This is simply the difference between the number of issues reaching new highs (during a 4-week period) and the number of issues reaching new lows (during the same 4-week period). Research results revealed a slight bullish tendency at extreme high readings and a slight bearish tendency at extreme low readings. However, results were not significant enough to warrant reliance on this indicator for market timing purposes.
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