## WHAT IS 'Haurlan Index'

The Haurlan Index is a technical analysis indicator, developed by rocket scientist P.N. "Pete" Haurlan, that is used to detect market breadth. The Haurlan Index measures breadth over the short term, intermediate term and long term with a set of moving averages measuring money volume of the New York Stock Exchange (NYSE).

Next Up

## BREAKING DOWN 'Haurlan Index'

The Haurlan Index is named after its creator, P.N. "Pete" Haurlan, a technical manager for the Jet Propulsion Lab in Pasadena, CA, who analyzed the stock market for fun during his downtime at work. Haurlan modeled the exponential moving averages (EMAs) of his Haurlan Index after the EMAs he used to calculate rocket tracking circuitry. His index contains three components, each an EMA of the accumulation/distribution (A/D) line of the New York Stock Exchange. The A/D line is an arithmetic calculation involving start price, finish price, lowest price, and the distances between these prices, that calculates how much money is flowing into and out of a given security, to predict how the price of the security will move. The Haurlan Index calculates those numbers for the NYSE to show money flow into and out of the market as a whole to predict the market. The three components of the Haurlan Index are:

Short term, which take a 3-day EMA of the A/D line of the NYSE. This measures breakouts.

Intermediate term, which takes a 20-day EMA of the same A/D line of the NYSE. This measures resistance.

Long term, which takes a 200-day EMA od the same A/D line of the NYSE. This measures momentum.

The exponential aspect of the EMA could exaggerate blips or bumps in the A/D/ line, especially for the short term calculating, so to compensate for this Haurlan added a smoothing factor to avoid anomalies and gain a real average for the time period. The smoothing factor for the short term EMA is 50 percent, for intermediate term it's 10 percent, and for long term it's 1 percent.

## Haurlan Index and Trade Levels

Pete Haurlan started an investment newsletter in the 1960s called Trade Levels. The newsletter was different from other investment newsletters of the time in that it had charts and graphs generated by computers. At the time, before the proliferation of personal computers, Haurlan used the computers at the Jet Propulsion Lab to perform investment chart calculations. This was radical at the time, and the calculating capacity of the computer allowed him to develop his Haurlan Index, with its multiple A/D line calculations and exponential moving averages. The newsletter brought his ideas and the Haurlan Index to fame, and inspired other analysts to develop technical indicators of their own using the same concepts Haurlan worked with.

RELATED TERMS
1. ### Toraku Index

A Toraku Index is a technical indicator that compares the number ...
2. ### NYSE Composite Index

The NYSE Composite Index serves as a gauge of the performance ...
3. ### Technically Strong Market

Technically strong market reflects healthy signals or positive ...
4. ### True Strength Index - TSI

The true strength index is a technical momentum indicator that ...

A technical indicator used to ascertain market momentum. The ...
6. ### Breadth of Market Theory

Breadth of market theory is a technical analysis method gauging ...
Related Articles

### This Indicator Should Always Be Part Of Your Strategy

The relationship between price, 200-day EMA and its slope of generate useful patterns that assist in price prediction and trade management.

### Simple Versus Exponential Moving Averages

These technical indicators help traders visualize trends by smoothing out price movements, but they are based on different calculations.
3. Investing

The 50-day EMA has numerous applications in price prediction, position choice & strategy building
4. Insurance

### Two Short Sales in the Banking Sector (BAC, C)

These two banks show major rejection at long-term resistance and could test their first quarter lows.
5. Investing

### Moving Average Bounce

These complex indicators can help traders interpret trend changes, but are they too good to be true?

### Biotech Bottom Calls After Big Bounce (IBB, XBI)

Biotech funds have bounced sharply after testing downtrend lows, setting off a wave of bottom calls.

### Measuring Stock Market Sentiment With Extreme Indicators

Pay attention to how the exhaustion principle helps technical indicators signal trend reversals when abrupt value changes coincide with high trading volume.
9. Investing

### 3 S&P 500 Comeback Kids (ADS, SYMC)

These three broken stocks show exceptionally strong volume patterns that could support new uptrends.

### Top 7 Technical Analysis Tools

Technical indicators determine the direction of an asset’s momentum and whether that direction will continue. Here are seven used most.
RELATED FAQS
1. ### How do I use exponential moving average (EMA) to create a forex trading strategy?

Learn how to use the exponential moving average (EMA) to create a dynamic forex trading strategy. Read Answer >>
2. ### What is the moving average convergence divergence (MACD) formula, and how is it calculated?

Learn the formula for the moving average convergence divergence momentum indicator and find out how to calculate it and its ... Read Answer >>
3. ### How do moving average convergence divergence (MACD) and relative strength Index (RSI) ...

Learn the differences between the moving average convergence divergence (MACD) and the relative strength index (RSI) — indicators ... Read Answer >>
4. ### What are the main advantages and disadvantages of using a Simple Moving Average (SMA)?

Examine some of the potential advantages and disadvantages involved with the use of a simple moving average or an exponential ... Read Answer >>
5. ### What are the main advantages of using moving averages (MA)?

See why moving averages have proven to be advantageous for traders and analysts and useful when applied to price charts and ... Read Answer >>
6. ### Why is the Triple Exponential Moving Average (TEMA) important for traders and analysts?

Learn how the triple exponential moving average is calculated and the indications it provides that are most helpful to traders ... Read Answer >>