KaibaraYuzan

[KY]New High New Low Ratio

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(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
https://school.stockcharts.com/doku.php?...
(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.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

Hi ,

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.
Reply
KaibaraYuzan samitrading
@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.
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