Name, Sometimes Called:
New High – 26 week
An example of the Price Channel Trading Range Breakout Rule.
Sometimes called an n-Day Rule.
Brief Description:
The n26hi is possibly the simplest of indicators:
It compares the current closing price with those of the previous
26 weeks.
Definitions, Formulas:
The n26hi may be the simplest of technical indicators.
It simply compares the current closing price with the closing prices
over the previous 26 weeks.
n26hi is true today if CP(Today) is greater than max((CP( Previous
26 Weeks)) where
CP = closing price
n26hi is false otherwise.
Positive Development Calculation:
For this TAI, a new positive development (NPD)
occurs when n26hi is true. It is good for today only.
By definition, this TAI has no Cumulative Positive Developments
(CPD)
.
History:
The n26hi 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 n26hi indicator for DR Horton Inc (DHI).
The horizontal green lines are 26-weeks long. There was a new 26-week
high in early July 2000. The A-range indicates that every day was
a new 26-week high for the next few days. The B-range indicates
that every day from early August 2000 for another few days was a
new 26-week high.
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