Validea is an advisory service which assesses stocks based on the investing criteria of many of the ...
How to Gauge Market Sentiment with the NYSE Highs/Lows Line
08/18/2009 10:40 am EST
The NYSE Highs/Lows (H/L) Line is a market breadth indicator that compares the number of stocks on the New York Stock Exchange (NYSE) that are making new 52-week highs with the number of stocks that are making new 52-week lows.
What the NYSE Highs/Lows Line Tells Us
The NYSE Highs/Lows Line tells us one basic thing: Whether bullish or bearish sentiment is moving the stock market.
When more stocks on the NYSE are reaching new 52-week highs than are reaching new 52-week lows, the H/L Line moves higher. And when the H/L Line is moving higher, you know that bullish sentiment in the market is increasing.
When more stocks on the NYSE are reaching new 52-week lows than are reaching new 52-week highs, the H/L Line moves lower. And when the H/L Line is moving lower, you know that bearish sentiment in the market is increasing.
Watch the video now for more:
By S. Wade Hansen of LearningMarkets.com
Related Articles on STRATEGIES
The Roman philosopher Seneca wasn’t talking about the stock market when he wrote that “T...
The Dow Theory was originally referred to as “Dow’s Theory,” since it was based on...
When stocks are selling at valuation extremes and consumer optimism is at one of the highest levels ...