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.

BREAKING DOWN '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.

  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. 52-Week High/Low

    The highest and lowest prices that a stock has traded at during ...
  4. Technical Indicator

    Any class of metrics whose value is derived from generic price ...
  5. Advance/Decline Index

    A technical analysis tool that represents the total difference ...
  6. Record High

    The highest historical price level reached by a security, commodity ...
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