Nasan Ultimate Health Index (NUHI)

How it works

NUHI calculates a stock's performance by first computing a raw score using the exponential moving average (EMA) of price, adjusted by Average True Range (ATR). It then evaluates volume behavior by comparing green and red volume, weighting them based on the current trend.

A similar calculation is performed on a benchmark index. Both scores are normalized over 252 bars, creating a min-max scaled comparison between 0 and 1, allowing for a symmetrical representation of stock performance

Why it may be useful

NUHI provides traders with a nuanced view of stock performance beyond simple price movement. By incorporating volume dynamics, volatility adjustments, and benchmark comparisons, it offers insights into a stock's relative strength.

Traders can identify whether a stock is outperforming or underperforming its sector, even in complex market conditions. This holistic approach helps in making more informed investment decisions by revealing underlying market dynamics

When to explore it

NUHI is most effective during market transitions, sector rotations, and when comparing stocks within the same sector. It works best for swing traders seeking to identify stocks with sustainable momentum and relative strength.

Traders can use it to confirm trends, spot potential reversals, and understand a stock's performance context. It's particularly useful when traditional price analysis might not provide a complete picture of a stock's health

Keep exploring