Free Range Stocks

NASDAQ NewHigh/NewLow Ratio

This signal compares the number of stocks reaching new 52-week highs to the number reaching new 52 week lows for the NASDAQ index. It calculates the 9-day weighted moving average the new high and new low count, then subtracts them. If this value is greater than -500, the signal is bullish. Otherwise it's bearish. Often the signal's value starts falling before the actual index so it provides a fast-acting signal. The downside is it has you trading in-and-out more often. Please note the historical record shown below includes only one full bull-bear market cycle.

This signal was first published by Zeelotes on 22 July 2008 in The Motley Fool's Mechanical Investing Forum in Post 211385. It is one of three indicators in the Combination Indicator.

Historical Results

Since 2005, this signal has had the following results. Interest rates and transaction costs are both ignored, i.e. assumed to be zero.

Returns staying in the market the entire time
Total calendar days 4486
CAGR 6.73%
Maximum drawdown 56.8%

Returns using the New High Lately strategy
Total calendar days long the market 3142 (69.9% of the time)
Total calendar days sitting in cash 1351 (30.1% of the time)
Overall CAGR 7.10%
CAGR while long the market 10.29%
Market CAGR while you sat in cash -1.15%
Maximum drawdown 14.8%
Average signals per year 7.73

CAGR while in:
 Date  Signal  Price  Days  Stock Cash
 2005-11-09 Buy 1220.65   
 2006-05-17 Sell  1270.32  189 8.0% 
 2006-05-31 Buy  1270.09  14 -0.5% 
 2006-06-08 Sell  1257.93 -35.5% 
 2006-07-03 Buy  1280.19  25 29.2% 
 2006-07-11 Sell  1272.43 -24.2% 
 2006-08-21 Buy  1297.52  41 19.0% 
 2007-03-05 Sell  1374.12  196 11.3% 
 2007-03-21 Buy  1435.04  16 169.2% 
 2007-07-24 Sell  1511.04  125 16.3% 
 2007-08-31 Buy  1473.99  38 -21.2% 
 2007-09-10 Sell  1451.70  10 -42.7% 
 2007-09-18 Buy  1519.78 710.5% 
 2007-10-19 Sell  1500.63  31 -13.9% 
 2007-10-31 Buy  1549.38  12 164.6% 
 2007-11-01 Sell  1508.44 -99.2% 
 2008-08-11 Buy  1305.32  284 -17.0% 
 2008-08-20 Sell  1274.54 -62.0% 
 2009-01-09 Buy  890.35  142 -60.3% 
 2009-01-13 Sell  871.79 -85.4% 
 2009-03-25 Buy  813.88  71 -29.8% 
 2009-04-01 Sell  811.08 -16.5% 
 2009-04-02 Buy  834.38 17532.8% 
 2010-05-20 Sell  1071.59  413 24.8% 
 2010-06-17 Buy  1116.04  28 69.9% 
 2010-06-24 Sell  1073.69 -86.7% 
 2010-07-15 Buy  1096.48  21 44.1% 
 2010-07-16 Sell  1064.88 -99.5% 
 2010-07-26 Buy  1115.01  10 436.7% 
 2010-08-11 Sell  1089.47  16 -41.1% 
 2010-09-07 Buy  1091.84  27 3.0% 
 2011-03-15 Sell  1281.87  189 36.4% 
 2011-03-21 Buy  1298.38 117.9% 
 2011-05-24 Sell  1316.28  64 8.1% 
 2011-05-26 Buy  1325.69 267.3% 
 2011-06-06 Sell  1286.17  11 -63.4% 
 2011-06-27 Buy  1280.10  21 -7.9% 
 2011-07-29 Sell  1292.28  32 11.4% 
 2011-10-19 Buy  1209.88  82 -25.4% 
 2011-11-09 Sell  1229.10  21 31.5% 
 2011-12-06 Buy  1258.47  27 37.6% 
 2011-12-12 Sell  1236.47 -65.8% 
 2012-01-03 Buy  1277.06  22 71.0% 
 2012-05-09 Sell  1354.58  127 18.5% 
 2012-06-11 Buy  1308.93  33 -31.6% 
 2012-06-13 Sell  1314.88 128.9% 
 2012-06-15 Buy  1342.84 4565.0% 
 2012-07-24 Sell  1338.31  39 -3.1% 
 2012-08-06 Buy  1394.23  13 215.9% 
 2012-10-25 Sell  1412.97  80 6.3% 
 2012-11-01 Buy  1427.59 71.1% 
 2012-11-08 Sell  1377.51 -84.5% 
 2012-11-27 Buy  1398.94  19 34.5% 
 2014-04-11 Sell  1815.69  500 21.0% 
 2014-04-22 Buy  1879.55  11 215.1% 
 2014-04-30 Sell  1883.95 11.3% 
 2014-05-27 Buy  1911.91  27 22.1% 
 2014-07-31 Sell  1930.67  65 5.6% 
 2014-08-14 Buy  1955.18  14 39.0% 
 2014-09-16 Sell  1998.98  33 27.8% 
 2014-09-18 Buy  2011.36 208.8% 
 2014-09-19 Sell  2010.40 -8.3% 
 2014-10-24 Buy  1964.58  35 -21.4% 
 2014-12-09 Sell  2059.82  46 45.6% 
 2014-12-22 Buy  2078.54  13 28.9% 
 2015-01-14 Sell  2011.27  23 -40.7% 
 2015-01-27 Buy  2029.55  13 28.9% 
 2015-01-30 Sell  1994.99 -87.6% 
 2015-02-04 Buy  2041.51 438.6% 
 2015-05-06 Sell  2080.15  91 7.8% 
 2015-05-08 Buy  2116.10 2185.7% 
 2015-07-02 Sell  2076.78  55 -11.7% 
 2015-07-14 Buy  2108.95  12 59.7% 
 2015-07-24 Sell  2079.65  10 -40.0% 
 2015-09-17 Buy  1990.20  55 -25.3% 
 2015-09-21 Sell  1966.97 -65.8% 
 2015-10-12 Buy  2017.46  21 55.4% 
 2015-11-12 Sell  2045.97  31 18.0% 
 2015-11-27 Buy  2090.11  15 68.2% 
 2015-12-07 Sell  2077.07  10 -20.4% 
 2015-12-30 Buy  2063.36  23 -10.0% 
 2015-12-31 Sell  2043.94 -82.2% 
 2016-03-03 Buy  1993.40  63 -13.5% 
 2016-05-09 Sell  2058.69  67 19.2% 
 2016-05-24 Buy  2076.06  15 22.7% 
 2016-06-27 Sell  2000.54  34 -32.8% 
 2016-06-30 Buy  2098.86 34320.2% 
 2016-10-17 Sell  2126.50  109 4.5% 
 2016-10-21 Buy  2141.16 87.3% 
 2016-10-28 Sell  2126.41 -30.3% 
 2016-11-10 Buy  2167.48  13 71.2% 
 2017-08-10 Sell  2438.21  273 17.1% 
 2017-08-25 Buy  2443.05  15 4.9% 
 2018-02-05 Sell  2648.94  164 19.7% 
 2018-02-20 Buy  2716.26  15 84.2% 
 Green is good.  Red is bad. 
Last updated: 10 March 2018
See Graph or Main Timing Screen for current indicator value.