Archive for May, 2009
The Application of the New High/(New Highs + New Lows) Indicator to the Nasdaq Composite
The Application of the New High/(New Highs + New Lows) Indicator to the Nasdaq Composite For whatever reason-and, no doubt, there might be many-timing models tend to produce better results when applied to theNasdaq Composite than when applied the New York Stock Exchange-related market indices, such as the Dow Industrials and the Standard &Poor’s 500 [...]
Method of Interpretation
Buy signals can be said to take place when the ten-day moving average of the NH/(NH + NL) ratio first falls to below 25% (very oversold) and then rises by approximately ten units-say, from 13% to 23%-indicating that downside breadth momentum has begun to reverse. Buy signals also can be said to take place when [...]