LogoLogo
Return to StockChartsCharts & ToolsArticlesChartSchoolYour Dashboard
  • 📋ChartSchool
  • Table of Contents
    • Overview
      • Why Analyze Securities?
      • Technical Analysis
      • Fundamental Analysis
      • Random Walk vs. Non-Random Walk
      • Asset Allocation and Diversification
      • John Murphy's 10 Laws of Technical Trading
      • John Murphy's "Charting Made Easy" eBook
      • Technical Analysis 101
        • TA 101 – Part 1
        • TA 101 – Part 2
        • TA 101 – Part 3
        • TA 101 – Part 4
        • TA 101 – Part 5
        • TA 101 – Part 6
        • TA 101 – Part 7
        • TA 101 – Part 8
        • TA 101 – Part 9
        • TA 101 – Part 10
        • TA 101 – Part 11
        • TA 101 – Part 12
        • TA 101 – Part 13
        • TA 101 – Part 14
        • TA 101 – Part 15
        • TA 101 – Part 16
        • TA 101 – Part 17
      • Irrational Exuberance
      • Cognitive Biases
      • Arthur Hill on Goals, Style and Strategy
      • Arthur Hill on Moving Average Crossovers
      • Multicollinearity
      • "The Trader's Journal" by Gatis Roze
        • Stage 1: Money Management
        • Stage 2: Business of Investing
        • Stage 3: The Investor Self
        • Stage 4: Market Analysis
        • Stage 5: Routines
        • Stage 6: Stalking Your Trade
        • Stage 7: Buying
        • Stage 8: Monitoring Your Investments
        • Stage 9: Selling
        • Stage 10: Re-Examine, Refine, Re-Enhance
        • Additional Reading
      • Bob Farrell's 10 Rules
      • Richard Rhodes' Trading Rules
      • Donchian Trading Guidelines
      • Why and How To Use Correlation
    • Chart Analysis
      • What Are Charts?
      • Support & Resistance
      • Trend Lines
      • Gaps and Gap Analysis
      • Introduction to Chart Patterns
      • Chart Patterns
        • Broadening Top or Megaphone Top
        • Double Top Reversal
        • Double Bottom Reversal
        • Head and Shoulders Top
        • Head and Shoulders Bottom
        • Falling Wedge
        • Rising Wedge
        • Rounding Bottom
        • Triple Top Reversal
        • Triple Bottom Reversal
        • Bump and Run Reversal
        • Flag, Pennant
        • Symmetrical Triangle
        • Ascending Triangle
        • Descending Triangle
        • Rectangle
        • Price Channel
        • Measured Move—Bullish
        • Measured Move—Bearish
        • Cup With Handle
      • Chart Types
        • Arms CandleVolume
        • CandleVolume
        • Elder Impulse System
        • EquiVolume
        • Heikin-Ashi Candlesticks
        • Kagi Charts
        • Renko Charts
        • Three Line Break Charts
        • MarketCarpets
        • Relative Rotation Graphs (RRG Charts)
        • Seasonality Charts
        • Yield Curve
      • Candlestick Charts
        • Introduction to Candlesticks
        • Candlesticks and Traditional Chart Analysis
        • Candlesticks and Support
        • Candlesticks and Resistance
        • Candlestick Bullish Reversal Patterns
        • Candlestick Bearish Reversal Patterns
        • Candlestick Pattern Dictionary
      • Point and Figure Charts
        • Point and Figure Basics
          • Introduction to Point & Figure Charts
          • Point & Figure Scaling and Timeframes
          • P&F Trend Lines
        • Classic Patterns
          • P&F Bullish Breakouts
          • P&F Bearish Breakdowns
          • P&F Signal Reversed
          • P&F Catapults
          • P&F Triangles
          • P&F Bull & Bear Traps
        • P&F Price Objectives
          • P&F Price Objectives: Breakout and Reversal Method
          • P&F Price Objectives: Horizontal Counts
          • P&F Price Objectives: Vertical Counts
        • Point & Figure Indicators
        • P&F Scans and Alerts
          • P&F Pattern Alerts
      • Chart Annotation Tools
        • Andrews' Pitchfork
        • Stock Market Cycles
        • Fibonacci Retracements
        • Fibonacci Arcs
        • Fibonacci Fans
        • Fibonacci Time Zones
        • Quadrant Lines
        • Raff Regression Channel
        • Speed Resistance Lines
    • Technical Indicators & Overlays
      • Introduction to Technical Indicators and Oscillators
      • Technical Indicators
        • Accumulation/Distribution Line
        • Alligator Indicator
        • Aroon
        • Aroon Oscillator
        • ATR Bands
        • ATR Trailing Stops
        • Average Directional Index (ADX)
        • Average True Range (ATR) and Average True Range Percent (ATRP)
        • Balance of Power (BOP)
        • Bollinger BandWidth
        • %B Indicator
        • Chaikin Money Flow (CMF)
        • Chaikin Oscillator
        • Chande Trend Meter (CTM)
        • CMB Composite Index
        • Commodity Channel Index (CCI)
        • ConnorsRSI
        • Coppock Curve
        • Correlation Coefficient
        • DecisionPoint Price Momentum Oscillator (PMO)
        • Detrended Price Oscillator (DPO)
        • Distance From Highs
        • Distance From Lows
        • Distance To Highs
        • Distance To Lows
        • Distance From Moving Average
        • Ease of Movement (EMV)
        • Force Index
        • Gopalakrishnan Range Index
        • High Low Bands
        • High Minus Low
        • Highest High Value
        • Linear Regression R2
        • Lowest Low Value
        • Mass Index
        • MACD (Moving Average Convergence/Divergence) Oscillator
        • MACD-Histogram
        • MACD-V
        • MACD-V Histogram
        • Median Price
        • Money Flow Index (MFI)
        • Negative Volume Index (NVI)
        • On Balance Volume (OBV)
        • Percentage Price Oscillator (PPO)
        • Percentage Volume Oscillator (PVO)
        • Performance Spread
        • Price Relative/Relative Strength
        • Pring's Know Sure Thing (KST)
        • Pring's Special K
        • Rate of Change (ROC)
        • Relative Strength Index (RSI)
        • Relative Volume (RVOL)
        • RRG Relative Strength
        • StockCharts Technical Rank
        • Slope
        • Standard Deviation (Volatility)
        • Stochastic Oscillator (Fast, Slow, and Full)
        • StochRSI
        • Traffic Light
        • TRIX
        • True Range
        • True Strength Index
        • TTM Squeeze
        • Typical Price
        • Ulcer Index
        • Ultimate Oscillator
        • Vortex Indicator
        • Weighted Close
        • Williams %R
      • Technical Overlays
        • Anchored VWAP
        • Bollinger Bands
        • Chandelier Exit
        • Double Exponential Moving Average (DEMA)
        • Hull Moving Average (HMA)
        • Ichimoku Cloud
        • Kaufman's Adaptive Moving Average (KAMA)
        • Keltner Channels
        • Linear Regression Forecast
        • Linear Regression Intercept
        • Moving Averages—Simple and Exponential
        • Moving Average Ribbon
        • Moving Average Envelopes
        • Parabolic SAR
        • Pivot Points
        • Price Channels
        • Triple Exponential Moving Average (TEMA)
        • Volume-by-Price
        • Volume-Weighted Average Price (VWAP)
        • ZigZag
    • Market Indicators
      • Introduction to Market Indicators
        • Market Indicator Dictionary
      • Advance-Decline Line
      • Advance-Decline Percent
      • Advance-Decline Volume Line
      • Advance-Decline Volume Percent
      • Arms Index (TRIN)
      • Bullish Percent Index (BPI)
      • DecisionPoint Intermediate-Term Breadth Momentum Oscillator (ITBM)
      • DecisionPoint Intermediate-Term Volume Momentum Oscillator (ITVM)
      • DecisionPoint Swenlin Trading Oscillator (STO)
      • High-Low Index
      • High-Low Percent
      • McClellan Oscillator
      • McClellan Summation Index
      • Net New 52-Week Highs
      • Percent Above Moving Average
      • Pring's Bottom Fisher
      • Pring's Diffusion Indicators
      • Pring's Inflation and Deflation Indexes
      • Pring's Net New High Indicators
      • Put/Call Ratio
      • Record High Percent
      • Volatility Indices
    • Market Analysis
      • Dow Theory
      • Sector Rotation Analysis
      • Intermarket Analysis
      • The DecisionPoint Chart Gallery
      • DecisionPoint Rydex Asset Analysis
      • Wyckoff Analysis Articles
        • Wyckoff Market Analysis
        • Wyckoff Stock Analysis
        • The Wyckoff Method: A Tutorial
      • Elliott Wave Analysis Articles
        • Introduction to Elliott Wave Theory
        • Identifying Elliott Wave Patterns
        • Guidelines for Applying Elliott Wave Theory
    • Trading Strategies & Models
      • DecisionPoint Trend Model
      • Trading Strategies
        • Bollinger Band Squeeze
        • CCI Correction
        • CVR3 VIX Market Timing
        • Faber's Sector Rotation Trading Strategy
        • Gap Trading Strategies
        • Harmonic Patterns
        • Hindenburg Omen
        • Ichimoku Cloud Trading Strategies
        • The 'Last' Stochastic Technique
        • MACD Zero-Line Crosses With Swing Points
        • Moving Average Trading Strategies
          • Finding Support and Resistance in Moving Averages
          • Guppy Multiple Moving Average: An MA Ribbon Designed to Tip the Market’s Hand
          • How To Trade Price-to-Moving Average Crossovers
          • Trading the Bounce: Finding Support and Resistance in Moving Averages
          • Trading the Death Cross
          • Trading Using the Golden Cross
          • Using the 5-8-13 EMA Crossover for Short-Term Trades
        • Moving Momentum
        • Narrow Range Day NR7
        • Percent Above 50-day SMA
        • Percent B Money Flow
        • The Pre-Holiday Effect
        • RSI(2)
        • Six-Month Cycle MACD
        • Slope Performance Trend
        • Stochastic Pop and Drop
        • Swing Charting
        • Trend Quantification and Asset Allocation
    • Index & Market Indicator Catalog
      • Advance-Decline Indicators
      • Cboe Indices and Indicators
      • CME Futures and Spot Prices
      • DecisionPoint Sentiment Indicators
      • Dow Jones Breadth Indicators
      • Dow Jones Global Indices
      • Dow Jones Select Indices
      • Dow Jones Titans Indices
      • Dow Jones US Indices
      • Economic Indicators
      • ICE Futures and Spot Prices
      • Intellidex Indices
      • MSCI Indices
      • New 52-week Highs and Lows for Exchanges
      • NYSE Arca Equity Indices
      • NYSE Equity Indices
      • Philadelphia Indices
      • S&P 500 Sector and Industry Groups
      • S&P GSCI Indices
      • StockCharts AD Percent
      • StockCharts AD Volume Percent
      • StockCharts Bullish Percent Index
      • StockCharts High-Low Index
      • StockCharts High-Low Percent
      • StockCharts Percent Above Moving Average
      • StockCharts Pseudo Symbols
      • StockCharts Record High Percent
      • StockCharts Theoretical Indices
      • US Treasury Yields
    • 📖Glossary
      • 📖Glossary - A
      • 📖Glossary - B
      • 📖Glossary - C
      • 📖Glossary - D
      • 📖Glossary - E
      • 📖Glossary - F
      • 📖Glossary - G
      • 📖Glossary - H
      • 📖Glossary - I
      • 📖Glossary - J
      • 📖Glossary - K
      • 📖Glossary - L
      • 📖Glossary - M
      • 📖Glossary - N
      • 📖Glossary - O
      • 📖Glossary - P
      • 📖Glossary - Q
      • 📖Glossary - R
      • 📖Glossary - S
      • 📖Glossary - T
      • 📖Glossary - U
      • 📖Glossary - V
      • 📖Glossary - W
      • 📖Glossary - X, Y, Z
    • Options Glossary
    • Educational Resources
Powered by GitBook
LogoLogo

ON STOCKCHARTS

  • Charts & Tools
  • Articles
  • StockCharts TV
  • ChartSchool

MEMBERS

  • Your Dashboard
  • Your ChartLists
  • Advanced Scans
  • Technical Alerts

HELP

  • Support Center
  • FAQs
  • Contact Us
  • Pricing

COMPANY

  • About Us
  • What's New
  • Careers
  • StockCharts Store

© StockCharts.com, Inc. All Rights Reserved.

On this page
  • Calculating the High-Low Index
  • Interpreting the High-Low Index
  • Direction Identification
  • Bull-Bear Bias
  • A Lagging Indicator
  • The Bottom Line
  • SharpCharts
  • Symbol List

Was this helpful?

Export as PDF
  1. Table of Contents
  2. Market Indicators

High-Low Index

The 10-day moving average of the Record High Percent Index, which is a breadth indicator (see below).

PreviousDecisionPoint Swenlin Trading Oscillator (STO)NextHigh-Low Percent

Last updated 11 months ago

Was this helpful?

The High-Low Index is a breadth indicator based on , which is based on new 52-week highs and new 52-week lows. The Record High Percent equals new highs divided by new highs plus new lows. The High-Low Index is simply a 10-day SMA of the Record High Percent, which makes it a smoothed version of the Record High Percent. This article will explain how to identify the direction of the High-Low Index and how to use the absolute level to define a trading bias.

Calculating the High-Low Index

Record High Percent = {New Highs / (New Highs + New Lows)} x 100 

High-Low Index = 10-day SMA of Record High Percent

The table above shows some possibilities for Record High Percent. As the formula implies, Record High Percent shows the number of new highs relative to the total (new highs plus new lows). The total is multiplied by 100 to generate round numbers that fluctuate between 0 and 100. The table above shows various possibilities based on an index with 100 stocks, such as the Nasdaq 100 or S&P 100. Rarely, if ever, will 100% of stocks record a new high or new low. Readings below 50 indicate that there were more new lows than new highs. Readings above 50 indicate that there were more new highs than new lows. 0 indicates there were zero new highs (0% new highs). 100 indicates that there was at least 1 new high and no new lows (100% new highs). 50 indicates that new highs and new lows were equal (50% new highs).

The High-Low Index smooths Record High Percent with a 10-day SMA. Chart 1 above shows the Record High Percent in the first indicator window (black line) and the High-Low Index in the second indicator window (red line). Notice how the S&P 100 Record High Percent ($OEXHILO) smooths the S&P 100 Record High Percent ($RHOEX), especially during May-June 2010 (yellow area). Record High Percent bounced from 0 to 100 numerous times, but the High-Low Index trended lower in May and higher in June.

Interpreting the High-Low Index

In general, a stock index is deemed strong (bullish) when the High-Low Index is above 50, which means new highs outnumber new lows. Conversely, a stock index is deemed weak (bearish) when the High-Low Index is below 50, which means new lows outnumber new highs. This indicator can move to its extremities and remain near its extremes when the underlying index is in a strong uptrend or downtrend. Readings consistently above 70 usually coincide with a strong uptrend. Readings consistently below 30 usually coincide with a strong downtrend.

Direction Identification

The directional movement of The High-Low Index shows when new highs are expanding or contracting, which in turns reflects underlying strength or weakness in the index. Chartists can define direction by applying a moving average to the High-Low Index. Chart 2 shows the NY Composite with the NYSE High-Low Index ($NYHILO) and its 20-day SMA. The High-Low Index turns up when it moves above the 20-day SMA and turns down when it moves below the 20-day SMA. New highs are increasing and/or new lows are decreasing when the High-Low Index rises. New highs are decreasing and/or new lows are increasing when the High-Low Index falls.

The green dotted lines show the High-Low Index turning up and moving above its 20-day SMA, which is positive for the NY Composite. The red dotted lines show the High-Low Index moving below its 20-day SMA, which is negative for the NY Composite. Because the bigger trend was down from October 2007 to March 2009, the bearish signals worked much better than the bullish signals.

Bull-Bear Bias

The absolute level of the High-Low Index can also be used to ascertain strength or weakness in new highs, which in turn reflects underlying strength or weakness in the index. Sometimes the High-Low Index can be rather volatile, but still remain consistently above or below its midpoint (50). Remember, new highs outnumber new lows when above 50 and new lows outnumber new highs when below 50. This level provides a clear bullish or bearish bias for the underlying index.

Chart 3 shows the Nasdaq with the High-Low Index and its 20-day SMA. The index moved above/below its 20-day SMA many times from June to August 2007 and from November 2007 to February 2008. Playing these crossovers would have resulted in numerous whipsaws. Instead, chartists can look at the overall level of the High-Low Index. Notice how the High-Low Index moved below 50 at the end of May and remained below 50 until late August (3 months). Once moving above 50, the High-Low Index remained above 50 until early March (7 months). Not all signals will last this long, however.

Armed with a bullish or bearish bias, chartists can then turn to other aspects of technical analysis to generate corresponding signals. Chartists can focus on bullish signals when the High-Low Index is above 50 and ignore bearish signals. Oversold readings, resistance breakouts or bullish moving average crosses can be used in a bullish environment. Chartists can focus on bearish signals when the High-Low Index trades below 50 and ignore bullish signals. Overbought readings, support breaks, and bearish moving average crosses can be used in a bearish environment.

A Lagging Indicator

New 52-week highs and new 52-week lows are considered lagging indicators. In other words, the market will change direction before there is a significant shift in the number of new 52-week highs or the number of new 52-week lows. Think about it. It takes at least 52 weeks to forge a new high or a new low. Therefore, an extended move is required for a stock to forge a new high or a new low. There are plenty of new highs after an extended advance, just as there are plenty of new lows after an extended decline. New highs dry up when a stock index corrects after an extended advance. Some new lows will surface during a correction, but it takes an extended decline to generate a serious increase in new lows. Similarly, new lows dry up when a stock index bounces after an extended decline. Some new highs may surface during this bounce, but it takes an extended advance to generate a serious increase in new highs.

The Bottom Line

As with its cousin, the Record High Percent, the High-Low Index is a breadth indicator specific to an underlying index. The Nasdaq 100 High-Low Index applies to stocks in the Nasdaq 100, the NYSE High-Low Index applies to stocks in the NY Composite and so on. Like all indicators, the High-Low Index is not meant to be used as a stand-alone indicator. It should be used in conjunction with other aspects of technical analysis.

SharpCharts

Symbol List

SharpCharts users can plot the High-Low Index for eight indices, including the S&P 500, TSX Composite and Dow (see list below). It is often helpful to plot the underlying index along with the indicator for easy reference. The High-Low Index can be plotted in an indicator window or in the main chart window. It can even be plotted behind the price plot of the underlying index. In this example, the index is shown in the main window with corresponding High-Low Index plotted behind the index and in the indicator window. First, enter the index symbol in the “Symbol” box in the upper left. Second, go to “Indicators” and select “Price.” Third, enter the symbol for the Record High Percent in the “Parameters” box. Fourth, select “Above, Below or Behind” for the “Position” of the indicator plot. A moving average can be added by choosing “Advanced Options” and selecting an “Overlay.” for a live example.

StockCharts.com users can access for all our High-Low Index indicators. From this list, click the “Mentions” icon to the right of a specific symbol for more details about the symbol, as well as recent mentions in Public ChartLists, blog articles, and more.

Click here
an up-to-date list of symbols
Record High Percent
Spreadsheet 1
High-Low Index - Chart 1
High-Low Index - Chart 2
High-Low Index - Chart 3
High-Low Index - Chart 4
High-Low Index - SharpCharts