Customer Support : 020-61923200, [email protected] | Call and Trade : 020-61923220
Creator: Definedge
MA period%: 20
Period: 50
In the High Low Momentum Index indicator, four lines are plotted below the chart.
1 – Green line represents High
2 – Red line represents Low
3 – Yellow line represents 20% distance from low
4 – Blue line represents 20% distance from high
Prashant Shah explained the high low momentum index in his book on relative strength and breadth charts.
Stocks between the high band and the blue line, which is 10% away from the high price, are in bullish momentum.
Stocks between the low band and the yellow line, which is 10% away from the high price, are bullish.
The high low momentum index is also a very useful breadth indicator.
Click here to learn more about it.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.
The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.