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Overview
The New Highs/Lows Ratio ("NH/NL Ratio") displays the daily ratio between the number of
stocks reaching new 52-week highs and the number of stocks reaching new 52-week lows.
Interpretation
The NH/NL Ratio is another useful method to visualize the relationship of stocks that are
making new highs and new lows. High readings indicate that a large number of stocks are
making new highs (compared to the number of stocks making new lows). Readings less than
one indicate that the number of stocks making new highs are less than the number of stocks
making lows.
Refer to the New Highs-New Lows indicator for more
information on interpreting the NH/NL Ratio.
Example
The following chart shows the S&P 500 and the
NH/NL Ratio.
 The Ratio increased
dramatically when the S&P 500 began making new highs in 1990. However, as the S&P has
continued to move on to new highs, the Ratio has failed to reach new highs. This implies
that the S&P 500 is weaker than it appears.
Calculation
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