Author: rgearyiii

Subject: Re: Nasdaq NH/NL

Date: 8/26/2019

Recommendations: 18

kimardenmiller: The 20190823 [NHNLDiff] of -3.695932 means ... 3.7% more stocks are making new lows than are making new highs? NHNLDiff in the BCC URL posted by lohill is a 9-day weighted moving average of the percent at new highs minus the percent at new lows, where new highs and new lows are both "strict" (https://boards.fool.com/nasdaq-nhnl-and-tick-size-31878464.a...) by close and based on fully-adjusted prices g-prices. The design is to use FTSE/Russell-eligible stocks. The design is to use the stocks that I use, which happens to be very close to FTSE/Russell-eligible stocks, so I describe them as such for ease of communication. Is anyone aware of what the relationship might be between Stockcharts.com`s $NAHL and GTR1`s [NHNLDiff]? 1. $NAHL is a difference of stock counts, not a difference of percentages. This makes no difference if your cut-off level is zero, but if it is anything other than zero, then it makes a difference. The number of NASDAQ listings changes over time, meaning a difference of 50 now is not the same as a difference of 50 in, say, 1998, when there were twice as many common stocks on the major exchanges than there are now. 2. I doubt that $NAHL uses stock prices that are adjusted for all dividends, which I`ve found to be optimal. 3. Like every other source that I know of, StockCharts probably uses intra-day high/low prices instead of closing prices (assuming they calculate new highs and lows themselves), but I`ve found closing prices to be optimal. 4. I doubt that $NAHL uses strict new highs and lows as I do, as explained in https://boards.fool.com/nasdaq-nhnl-and-tick-size-31878464.a... . This makes little difference under fully decimalized tick sizes, but it made a very big difference before the completion of decimalization in 2001, and it would have made a big difference if the plan to adopt $0.05 tick sizes hadn`t been scrapped a couple years ago. 5. $NAHL itself is just a raw difference not smoothed by any averaging, though the website allows you to easily apply EMAs, WMAs, etc if you want. 6. Perhaps most importantly, judging by how bullish $NAHL remained through the end of July, I`d say StockCharts is not applying any crap filters to NASDAQ securities because it would have taken an awful lot of new highs from bond-like securities to keep it propped up like that. Using the entire exchange for $NAHL may work fine most of the time, but for now, it`s broken IMO. Robbie Geary