High-Low Index

Definition of 'High-Low Index'


An index that seeks to provide confirmation of a market trend by comparing the daily number of stocks reaching new 52-week highs with the number reaching new 52-week lows on a broad equity index. It is calculated by dividing the number of high stocks and low stocks by the total number of trades on that day.

Investopedia explains 'High-Low Index'


The high-low index is considered bullish if it is positive and rising and bearish if it is negative and falling. Since the index can be quite volatile on a day-to-day basis, market technicians generally use a moving average on the data to smooth out the daily swings.



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