Abbreviation: New Highs-New Lows Spread: VolWgtAvg
Category: Market New Highs / New Lows
Input Parameters:
| Name | Range | Default |
| New Highs | ||
| New Lows | ||
| Total Volume | ||
| VolWgtAvg1 Periods | Int >= 1 | 5 |
| VolWgtAvg2 Periods | Int >= 1 | 10 |
Calculation:
VolWgtAvg(X, Total Volume, VolWgtAvg1 Periods) – VolWgtAvg(X, Total Volume, VolWgtAvg2 Periods)
where
X = New Highs-New Lows Spread(New Highs, New Lows)
New Highs-New Lows Spread represents New Highs-New Lows Spread
VolWgtAvg represents Volume Weighted 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 volume weighted moving averages (which give more importance to those periods with higher volume relative to the other periods in the moving average’s time frame), the indicator tends to focus more upon movement between periods of relatively higher volume than between periods of relatively lower volume.