High-Low Index

AAA

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.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. 52-Week High/Low

    The highest and lowest prices that a stock has traded at during ...
  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Advance/Decline Index

    A technical analysis tool that represents the total difference ...
  5. Technical Indicator

    Any class of metrics whose value is derived from generic price ...
  6. Record High

    The highest historical price level reached by a security, commodity ...
Related Articles
  1. Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand ...

  2. Technical Indicators

    Discovering the Absolute-Breadth Index ...

  3. Forex Education

    Introduction to Types of Trading: Technical ...

  4. Technical Indicators

    How to identify the ascending tops of ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center