Excellent Share Trading Video:Episode 78: The High-Low Index

More Trading Tips for Stock Traders at: www.TradingTips.com Other recommended sites for traders at http The High-Low Index (HLI) is an easy-to-read "market breadth indicator." At least that's what "they" say. The truth is, the HLI is pretty flawed at measuring the "breadth" of an uptrend or downtrend. But that doesn't mean it is not a valuable indicator, nonetheless. If you used HLI along with the Nasdaq and NYSE composites, you could have spotted some pretty significant trends. Rather than indicating the "breadth" of the trend, I think HLI actually works well as an indicator of strength of a trend. I also think it is rather predictive, even though "they" say it is a lagging indicator. This video contains a few example charts that will make you question what "they" say! And that's not all... In this episode, you'll learn: - What the High-Low Index is and how it is calculated. The calculation is actually easy and straightforward, unlike a lot of convoluted indicators. - How to interpret HLI as a trend-strength indicator. Again, I find this to be HLI's most significant use. And one of the reasons is included below. - How HLI is flawed as a breadth indicator. Breadth indicators are supposed to measure how "wide" a trend is -- ie, how many stocks are participating in a trend. However, HLI can give you some pretty false readings if used this way, and I'll tell you why. - What the ticker symbols are for HLI, and how it can be used with the S&P 500, the Nasdaq composite, the ...Share Trading Facts: Many full-time stock traders and stock investors have a formal education and training in fields such as economics, mathematics and computer science, which are particularly relevant to this occupation. Depending on the nature of each national or state legislation involved, a large array of fiscal obligations must be respected, and taxes are charged by jurisdictions over those transactions, dividends and capital gains that fall within their scope. Although many companies offer courses in stock picking, and numerous experts report success through Technical Analysis and Fundamental Analysis, many economists and academics state that because of the efficient-market hypothesis it is unlikely that any amount of analysis can help an investor make any gains above the share market itself.

Duration: 00:05:28 Rating: