Thursday, August 23, 2012

NH-NL Index turns down.

The New High New Low Index for the Nifty stocks has given a clear bearish signal. The daily NH-NL turned down on 16th August, while the weekly NH-NL turns down today. Both the leading indicators have retraced pretty clear bearish divergences.

Another leading indicator for the markets the Advance/ Decline Ratio and Up/ Down volume ratio has been continuously giving lower lows after good bearish divergence which was retraced on 30th July.


The above chart shows the divergence on the Nifty Advance Decline Ratio Indicator.

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