New Highs - Lows Cumulative
New Highs - Lows Cumulative is a long-term market momentum indicator defining the market's strength. It is calculated by finding the total cumulative distinction between new 52-week lows and new 52-week tops.
Interpretation of the New Highs-Lows Cumulative indicator is the same as of the Advance/Decline Line in that discrepancies happen if the indicator does not confirm the market index's low or top. Discrepancies in a down market demonstrate potential strength while discrepancies during an up market show potential weakness.
To confirm an ongoing trend use the New High-Low Cumulative. The most of the time the indicator shifts in the same direction as the major indices, when the indicator and the market shift in opposite directions a market reversal is forecasted. This happens because of the decreasing number of stocks taking part in the higher prices eventually yielding a reversal in the price trend. This indicator's value at the start of the data series is zero.