Ask Colin

For calculating the New Highs - New Lows in Insight Trader, why do you use 260 days?

Everything you say is true. However, there is a problem with using weeks or months in the formula too. I did some testing, comparing the filter results with the AFR. What I found with using weeks instead of days was that if a high was made on the last day and also an identical high was made on a day earlier in the week, it counted the latest high as a new high. Obviously this is not right either and it would be worse with a monthly filter.

My attitude to it is that using days is the best compromise. It is also important, of course to have set notrade days at zero, so it only looks at the last day. The main thing is to be consistent in the source you use.

Keywords: