The High-Low Index. A Simple Contrarian Indicator Worth Using.
Presenting & Coding the High-Low Index for Trading in Python.
Contrarian indicators exist in every color and finding them is a job that requires patience and proper research. For instance, many indicators are useless when taken live. This is because, all indicators are price-derived and are unlikely to consistently predict the future. The other reason is that they are simply bad calculations that do not reflect the reality of the market price.
One such example is the TRIX indicator which is unexplainably famous although its disappointing back-testing results. In this article, we will discuss the High-Low index. Note that an indicator can be useful without being profitable in a solo back-test as a trading strategy or system should not only rely on one indicator.
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