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Haurlan Index

What is 'Haurlan Index'

A technical analysis indicator, developed by P.N. Haurlan, that is used to detect market breadth. There are three components of the Haurlan index:

Short Term: a 3-day exponential moving average is taken of the net NYSE advances over declines.

Intermediate Term: same, using a 20-day exponential moving average.

Long Term:same, using a 200-day exponential moving average.

Explaining 'Haurlan Index'

Each of the three components is used to detect a different movement, whether it is momentum, breakouts, or resistance.


Further Reading


A financial investment assistant
ieeexplore.ieee.org [PDF]
… Williams accumulatiofVdistribution formula (Short-term) haurlan index McClellan oscillator Short-term trading index (5-day moving average) … Currently, all exchanges are known, as are most of the indexes. Likewise, al …

An integrated stock market forecasting model using neural networksAn integrated stock market forecasting model using neural networks
www.inderscienceonline.com [PDF]
… Williams accumulatiofVdistribution formula (Short-term) haurlan index McClellan oscillator Short-term trading index (5-day moving average) … Currently, all exchanges are known, as are most of the indexes. Likewise, al …

An integrated stock market forecasting model using neural networksAn integrated stock market forecasting model using neural networks
rave.ohiolink.edu [PDF]
… Williams accumulatiofVdistribution formula (Short-term) haurlan index McClellan oscillator Short-term trading index (5-day moving average) … Currently, all exchanges are known, as are most of the indexes. Likewise, al …

Supplementary information and markov processes in Soybean futures tradingSupplementary information and markov processes in Soybean futures trading
search.proquest.com [PDF]
… Williams accumulatiofVdistribution formula (Short-term) haurlan index McClellan oscillator Short-term trading index (5-day moving average) … Currently, all exchanges are known, as are most of the indexes. Likewise, al …

Algorithmic pairs trading: empirical investigation of exchange traded fundsAlgorithmic pairs trading: empirical investigation of exchange traded funds
aaltodoc2.org.aalto.fi [PDF]
… Williams accumulatiofVdistribution formula (Short-term) haurlan index McClellan oscillator Short-term trading index (5-day moving average) … Currently, all exchanges are known, as are most of the indexes. Likewise, al …



Q&A About Haurlan Index


What does a high value on the HHI indicate?

A high value on this index indicates that there are few large firms dominating an industry. This may mean that there are many small companies competing against each other, which could lead to less innovation and higher prices for consumers.

What is the Haurlan Index?

The Haurlan Index is a technical analysis indicator that was developed by P.N. Haurlan and used to detect market breadth.

What does the short term component of the index measure?

The short term component measures net NYSE advances over declines.

Why would you want to limit your calculation of this index to only include firms with at least a certain percentage of market share?

Limiting your calculations will ensure that you have more accurate data since you will not be including very small companies who do not have much impact on their industries' overall competitiveness.

What does the long term component measure?

The long term component measures net NYSE advances over declines using a two-day exponential moving average.

What is the HHI?

The Herfindahl index (also known as the Hirschman-Herfindahl Index, or simply the Herfindahl Index) is a measure of the size of firms in relation to an industry it is in and an indicator of the amount of competition among them.

What does the intermediate term component measure?

The intermediate term component measures net NYSE advances over declines using a two-day exponential moving average.

Where else might we see this concept applied besides antitrust law and technology management?

We might also see it applied when determining whether or not mergers between two corporations should be allowed by government agencies such as the Department of Justice's Antitrust Division or Federal Trade Commission (FTC).

What do low values on this index indicate?

Low values on this index indicate that there are many large firms dominating an industry, which could lead to less innovation and higher prices for consumers.

How does one calculate the HHI?

The HHI is calculated by squaring market share for each competing firm in an industry and then summing these numbers. This process can be limited to only include firms with at least a certain percentage of market share.

How do each of these components work to detect different movements in markets?

Each of these components detects movement differently, whether it be momentum, breakouts, or resistance.

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