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.

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RELATED FAQS
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    Market breadth is a study that compares the number of companies on a given exchange that have created new 52-week highs to ... Read Answer >>
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    The "percentage off the 52-week high or low" refers to when a security's current price is relative to where it has traded ... Read Answer >>
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