I use new high and new low indicators to help define cycles. My new high and new low indicators, which I developed with a computer and represent graphically, are exponential moving averages of the daily new highs and lows of the New York Stock Exchange. These indicators have specific uses. For example, the new high indicator is useful for confirming upside moves but is useless on downside moves. However, the new low indicator is the single best indicator I have found for defining cycles.
Confirmations imply no reversal in prices, while non-confirmations suggest a price reversal.
The number of trading days shown on a chart. Some of these indicators are period-sensitive that is, with a period longer or shorter than that recommended, the indicator may be confusing or even misleading. 5 year subscription to Working Money. Free book selection. Limited time offer.