Episode 80: Record High Percent Technical Indicator
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High-Low Index examines a particular index or exchange, such as the Nasdaq, the Dow Jones Industrial Average, the New York Stock Exchange, etc. Once a particular index or exchange is selected, High-Low Index takes the number of new highs that day among stocks trading on the index or exchange, and divides them by the total number of new highs and new lows — pretty simple, right?
But how can High-Low Index really be put to use? By using a derivative indicator known as Record High Percent — and that is the topic of this week’s TradingTips.com video newsletter!
In this episode, you’ll learn:
- What Record High Percent is and how it is calculated.
- How you can use Record High Percent as a confirmation tool, applied to broad indexes rather than individual stocks.
- What some of the downfalls of Record High Percent are — and how to avoid them.
- How you can add Record High Percent to your charts on StockCharts.com — it isn’t easy, but we offer step-by-step instructions.
Like last week’s episode, this one is light on calculations and therefore heavy on examples. We include several real-life charts to show you the practical applications of Record High Percent.
Record High Percent is a lagging indicator, better for confirmation than making predictions — but that’s okay. Use it to confirm your thesis on the general direction of the market, because more than 9 times out of 10, stocks trade in tandem with the broad market.
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
Duration : 0:3:49
Trading systematically involves basic statistics and probabilities. If you don’t know the answers to 6 basic questions, it’s only a matter of time before you blow out your account or lose your emotional mind.
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