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    The New High: New Low Index: Stock Market’s Best Leading Indicator
    The New High: New Low Index: Stock Market’s Best Leading Indicator
    The New High: New Low Index: Stock Market’s Best Leading Indicator
    Ebook77 pages52 minutes

    The New High: New Low Index: Stock Market’s Best Leading Indicator

    By Dr Alexander Elder

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    About this ebook

    Your stocks rise and drop in tune with the general trend of the market. A rising tide will lift all the boats just as surely as a falling tide will smash them against the rocks. The New High – New Low Index is the best leading indicator of market tides. Learning to read its messages will help you become a better investor and trader.

    The New Highs are the stocks rising to a new yearly high on any given day. These are the strongest stocks on the exchange, the leaders in strength. The New Lows are the stocks that fall to a new yearly low on any given day. These are the weakest stocks on the exchange, the leaders in weakness. The New High – New Low Index (NH-NL) tracks the balance of power between the two groups.

    This ground-breaking book will teach you to use NH-NL in your decision-making. Its chapters include:

    Basic definitions
    The Weekly NH-NL: How to Construct, Bull Market Confirmations, Divergences, Spikes
    The Daily NH-NL: Confirmations, Divergences
    Taking a Short-Term View: The 20/-500 Bounce Signal
    The NH-NL Ratio: Major Trends, Intermediate Trends
    NH-NL in Worldwide Markets
    Databank

    The book is illustrated with over 50 charts, including seven interactive series.

    Dr. Alexander Elder is a private trader and a teacher of traders, based in New York City. He is the author of several international best-sellers, starting with Trading for a Living (1993). Kerry Lovvorn is a trader and a trading coach, based in Alabama. His work has been featured in several books. Together, they direct www.SpikeTrade.com – a club for serious traders that runs a weekly trading competition.

    LanguageEnglish
    PublisherSpikeTrade
    Release dateJan 2, 2013
    ISBN9780974494234
    The New High: New Low Index: Stock Market’s Best Leading Indicator
    Author

    Dr Alexander Elder

    Dr. Alexander Elder is a professional trader based in New York City. He is the author of Come into My Trading Room (Barron's 2002 Book of the Year) and Trading for a Living, considered modern classics among traders, as well as a number of other books. Dr. Elder was born in Leningrad and grew up in Estonia, where he entered medical school at the age of 16. At 23, while working as a ship's doctor, he jumped a Soviet ship in Africa and received political asylum in the United States. He worked as a psychiatrist in New York City and taught at Columbia University. His experience as a psychiatrist provided him with unique insight into the psychology of trading. Dr. Elder's books, articles, and software reviews have established him as one of today's leading experts on trading. Dr. Elder is the originator of Traders' Camps—week-long classes for traders, as well as the Spike group. Group members are professional and semi-professional traders who share their best stock picks each week in competition for prizes among themselves. He continues to trade and is a sought-after speaker at conferences in the US and abroad.

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      Amazing book and detail! Easy to understand and very useful! Thank you!

    Book preview

    The New High - Dr Alexander Elder

    The New High – New Low Index

    Stock Market’s Best Leading Indicator

    Dr. Alexander Elder & Kerry Lovvorn

    Published by SpikeTrade.com

    the Smashwords Edition

    Copyright 2013 by SpikeTrade.com

    ISBN 978—0-9744942-3-4

    Last revised: December 2012

    DEAR READER: electronic publishing is still in its infancy. If the fonts do not to look right on your screen, write to us with the name of your reading device, and we will do our best to help. You also may want to print out this e-book – it’ll look fine on paper. If you have any suggestions for improving or updating this book, please write to the authors. To give you better and bigger charts, we attached a link to every chart in this e-book. When you have access to the Internet, click on any chart to be taken to a special page at our website where that chart will be bigger and clearer. You may also click on the bold print below the chart to open the larger chart on our website.

    LEGAL: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written permission of the copyright owner.

    DISCLAIMER OF WARRANTY: Although the authors have used their best efforts in preparing this book, they make no representations or warranties in respect to the accuracy or completeness of the contents. The advice and strategies contained herein may not be appropriate for your situation. You should consult with a professional where appropriate. The authors shall not be responsible for any loss.

    Books by Dr. Alexander Elder

    Trading for a Living (with Study Guide)

    Rubles to Dollars

    Come into My Trading Room (with Study Guide)

    Straying from the Flock

    Entries & Exits: Visits to 16 Trading Rooms (with Study Guide)

    The New Sell & Sell Short

    To Trade or Not to Trade: A Beginner’s Guide (e-book)

    Two Roads Diverged: Trading Divergences (e-book)

    Additive Manufacturing, 3D Printing, and the Coming Stock Market Boom

    Table of Contents

    Introduction: A Leading Indicator

    Basic Definitions

    The Weekly New High – New Low Index

    How to Construct Weekly NH – NL

    Weekly NH-NL Bull Market Confirmations

    Weekly NH-NL Divergences

    Weekly NH-NL Spikes

    The Daily New High – New Low Index

    Taking a Short-Term View: The 20–day and 65-day NH–NL

    The 20-day NH-NL Index

    The 20/-500 Bounce Signal

    The 65-day NH-NL Index

    An Alternative Method: The NH-NL Ratio

    NH-NL Ratio and Major Trends

    NH-NL Ratio and Intermediate Trends

    The New High – New Low Index in Worldwide Markets

    Databank

    Thanks and an Invitation

    About the Authors

    Introduction: A Leading Indicator

    Imagine driving on a mountain road, tall trees on both sides. Suddenly you see a wall of green ahead – the road is about to turn. Will it swing right or left? You grip the wheel and peer straight ahead, but all you see is trees.

    Glance at the treetops above the road. You’ll see a notch in the wall of green where the road runs, and the direction of that notch, either right or left, will show which way the road is about to turn.

    You just found yourself a leading indicator.

    We have leading indicators in many areas of life. The New High – New Low Index is a leading indicator of the stock market. It’ll help you find out whether the market is likely to rise or fall in the days and weeks ahead. It’ll help you make better decisions to buy stocks, sell them,

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