The Nasdaq Highs-Lows ($HAHGH-$NALOW) has

    Posted by zaphod on 20th of Jan 2023 at 04:42 pm

    The Nasdaq Highs-Lows ($HAHGH-$NALOW) has been positive for a whopping 13 days in a row. What do you guys think about this indicator now?

    Background: As mentioned many times on BPT, throughout 2022 this indicator has correctly signaled market downturns when going positive (albeit sometimes delayed a few days). But it's never stayed positive for more than 4 days (which was the big August reversal). So is "energy building up" (or doesn't this indicator work that way)? Or maybe with the larger environment this indicator should no longer be interpreted as it was in 2022?

    Your thoughts are most appreciated!

    https://stockcharts.com/h-sc/ui?s=%24COMPQ&p=D&st=2021-04-01&id=p15542950148&a=1260176089&listNum=3

    This is a very complex

    Posted by brophy on 21st of Jan 2023 at 09:23 am

    This is a very complex subject and relates to Breadth Thrusts that have been studied by many great traders over the years and can be calculated a number of different ways. If you care to study it private message me and I'll send you some interesting docs on the subject.

    zaphod, what worked for a

    Posted by junkie on 20th of Jan 2023 at 04:58 pm

    zaphod, what worked for a trending move -- a wave down which was not allowed to become overbought -- no longer works when in uptrend.

    yes regarding the Nasdaq highs-lows

    Posted by matt on 20th of Jan 2023 at 05:11 pm

    yes regarding the Nasdaq highs-lows - that works extremely well in strong bear market environments like we had in 2008, and it worked well last year where that difference would only get to zero or a bit above then reverse. The market has been different environment here for a while.

    also in the 2000 - late 2002 bear market the indicator did not just behave like it did last year, it did for certain lengths of time, but then would go well over zero for longer periods of times while the market was in stronger stages of its bear market. 

    again with anything - where you find correlations, those correlations work for periods of time, then stop - you have to play it while it's working, then adapt when it stops

    Thanks Matt and junkie! 

    Posted by zaphod on 20th of Jan 2023 at 06:03 pm

    Thanks Matt and junkie! 

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