(1) What is New High/New Low ratio? New High/New Low ratio is a ratio based on new 52-week high issues and new 52-week low issues. This indicator is best for identifying a bottom if you use this with other breadth indicators. However, this is not so useful to know the timing for short because bull momentum tends to continue. (Market top period is long, market bottom period is short.) Reference: Stochcharts.com school.stockcharts.com/doku.php?id=market_indicators:high_low_index (2) How to use? - Add this indicator to your chart. - Overbought >85 tends to continue, so don't short too early. You rather want to hold long until bull momentum deteriorates. Dark green = bullish momentum zone. - Oversold < 30 and if rolls over at the bottom, you can pile up long position.
you said it is for bottom catchers. Did you back tested it like you did with summation index success rate in percentage wise.
I've learned allot today from you.
wish you all the best.
KaibaraYuzan
⋅
@samitrading, I have not tried a backtest with New High/New Low ratio. And I think this ratio is not useful for swing trading and is good for long-term bottom identification.(e.g. March 23, 2020) I only use this as additional information with other breadth indexes/oscillators.
Napolenhyper19
⋅
@KaibaraYuzan, Hello, thank you for your work. What breadth indexes/oscillators are you usually referring to together? Tks in advance.
you said it is for bottom catchers. Did you back tested it like you did with summation index success rate in percentage wise.
I've learned allot today from you.
wish you all the best.