Norton High/Low Indicator
What Is Norton High/Low Indicator
The Norton High/Low Indicator use the Demand Index and stochastics to distinguish potential price reversals. It is a oscillator that shows when the price is possibly close to a base or top. The indicator isn't generally accessible on charting platforms.
Grasping the Norton High/Low Indicator
The Norton High/Low Indicator use the Demand Index and stochastics to distinguish potential price reversals. The Demand Index is a complex oscillator that joins price and volume to furnish traders with a leading indicator, while stochastics are usually utilized as a momentum indicator to survey the strength of a trend. The combination of these two methods plans to check both course and momentum.
The Norton High/Low Indicator creates a high line (NHP) and a low line (NLP) that traders notice for developments above and below critical levels too as hybrids that could show a change in the predominant trend. As a general rule, a NLP line that crosses below minus three is an indication that another base will happen throughout the next four to six periods, in a similar way, a NHP line crossing below minus three [signals](/exchange signal) that another top might be shaping throughout the equivalent time span.
When a signal has happened, traders might opt to sit tight for confirmation from the price before making a move. For instance, when the NLP dips under minus three, a trader could hang tight at the cost and the NLP to both beginning moving up again before making a purchase in the underlying asset. A few traders accept the indicator works better on week after week and month to month price bar charts, as opposed to short-term charts.
Traders ought to utilize the Norton High/Low indicator related to other technical indicators and chart patterns to amplify their chances of progress. For instance, numerous traders will take a gander at ancillary momentum oscillators or search out reversal designs on the price chart as a sign that a reversal is probably going to happen in the close term.
Difference Between the Norton High/Low Indicator and the Moving Average Convergence Divergence (MACD)
The moving average convergence divergence (MACD) is measuring the distance between two moving averages which depend on price. The Norton indicator is measuring price and volume developments as well as giving overbought and oversold readings. The MACD doesn't give overbought or oversold readings, however it gives hints with regards to the bearing and strength of the price trend.
Limitations of Using the Norton High/Low Indicator
The indicator isn't broadly utilized and hence isn't accessible on most charting and trading platforms.
The indicator doesn't generally accurately signal a base or top, which is the reason other affirming indicators or investigations are required. A lining signal could happen, yet the price could keep falling for an extended period of time, for instance. Price reversals might happen without the indicator arriving at three for a top or minus three for a base.
Highlights
- At the point when the NLP lines move below minus three, it shows the potential at a cost base in the next four to six periods.
- At the point when the NHP line moves over three, it demonstrates the potential for a top in the next four to six periods.
- The Norton High/Low is a combination of the Demand Index and stochastics.
