Name, Sometimes Called:
New High – 13 week
An example of the Price Channel Trading Range Breakout Rule.
Sometimes called an n-Day Rule.
Brief Description:
The n13hi is possibly the simplest of indicators:
It compares the current closing price with those of the previous
13 weeks.
Definitions, Formulas:
The n13hi may be the simplest of technical indicators.
It simply compares the current closing price with the closing prices
over the previous 13 weeks.
n13hi is true today if CP(Today) is greater than max((CP( Previous
13 Weeks)) where
CP = closing price
n13hi is false otherwise.
Positive Development Calculation:
For this TAI, a new positive development (NPD)
occurs when n13hi is true. It is good for today only.
By definition, this TAI has no Cumulative Positive Developments
(CPD)
.
History:
The n13hi indicator is one of a class of indicators
(the so-called n-week indicators) whose origins are lost
in the mists of time. Their simplicity makes it difficult to determine
who first decided to simply find a high closing price over a given
period.
This chart shows the n13hi indicator for DR Horton Inc (DHI).
The horizontal green lines are all 13 weeks long. The green line
marked A indicates a new 13-week high in mid March 2000. The price
rose then fell. When it rose again there were several more 13-week
highs.
The two green lines for B indicate a range of new 13-week highs.
Each day was a new 13-week high. The C lines also indicate a range
of new 13-week highs.
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