Abbreviation: New Highs-New Lows Spread: Avg Diff
Category: Market New Highs / New Lows
Input Parameters:
| Name | Range | Default |
| New Highs | ||
| New Lows | ||
| Avg1 Periods | Int >= 1 | 5 |
| Avg2 Periods | Int >= 1 | 10 |
Calculation:
Avg(X, Avg1 Periods) – Avg(X, Avg2 Periods)
where
X = New Highs-New Lows Spread(New Highs, New Lows)
New Highs-New Lows Spread represents New Highs-New Lows Spread
Avg represents Simple Moving Average
Discussion:
This indicator attempts to quantify movements in the New Highs-New Lows Spread indicator by calculating the difference between two moving averages. Since it uses simple moving averages (which give equal importance to all the periods within the moving average’s time frame), the indicator treats all periods alike, and does not focus more upon movement between recent or relatively higher volume periods as do the exponential and volume weighted variants.