Predict Stock Market Tops and Bottoms With The NH-NL Ratio

predict-stock-market-tops-and-bottoms-with-the-nh-nl-ratio Published 1 month ago Views (14) Finance

The new high/new low ratio (NH-NL) ratio has been around for many years but different investors use this indicator in different ways. Some investors plot the ratio on a chart using the number zero as a neutral designation with positive numbers equaling more new highs than new lows and a negative number equaling more new lows than new highs based on a specified period of time. I have developed and used the NH-NL ratio in a completely different way from some of the more popular methods. I started to follow stocks making new highs while reading the paper Investor’s Business Daily many years ago. I didn’t use the news highs as an indicator but I only studied stocks to buy from the list. As I became a more experienced investor, I subconsciously started to gauge the market while noting if the new highs were increasing or decreasing. After the stock market bubble burst in 2000, I started to record the difference between the daily new highs and the daily new lows. I would enter them into an excel sheet along with the price and volume of the major market indices and study their relationship. Within two years, I was convinced...

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Kwame Alexander is a poet, educator, publisher, and New York Times Bestselling author of 36 books, including SWING, BECOMING MUHAMMAD ALI, co-authored with James Patterson, REBOUND, which was shortlisted for prestigious UK Carnegie Medal, The Caldecott Medal and Newbery Honor-winning picture book, THE UNDEFEATED, illustrated by Kadir Nelson, and his NEWBERY medal-winning middle grade novel, THE CROSSOVER.

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