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Norton High/Low Indicator
The Norton High/Low Indicator is created to pick bottoms and highs on long-term price charts. It uses results from the Demand Index and the Stochastic study.
The NHP line the NLP lines are generated by it. The system also uses level lines at -2 and -3. The NLP line crossing -3 to the downside is the signal that a new bottom will happen in 4-6 periods, using daily, weekly, or monthly data.
In the same manner, the NHP line crossing 3 to the downside shows a new top in the same time frame. The indicator is more trustworthy if using longer-term data (weekly or monthly). If indicator moves under the 3 level, a reversal may be quite close. The reversal, or "hook," is the signal for entering the market.
To be on the safe side, use the Norton High/Low Indicator in conjunction with other studies for confirmation.