Patterns of Relative Strength

Patterns of Relative Strength

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The Relative Strength Quotient (Price/Index) is a central concept which unifies momentum and breadth for stocks and sectors, and studying it in detail indirectly reveals the connections with many other important areas of Technical Analysis. During the major market panic which led to a bottom in October 1998, the Relative Strength charts predicted that NASDAQ-100 and the Internet Sector were going to be the leaders of the future rally into 1999. And in March 2000, the Relative Strength charts also predicted the abrupt loss of leadership of NASDAQ-100 and Internet Sector. At the end of the 2000-2002 Bear Market, the R.S. charts predicted that Russell 2000 and small stocks were going to lead the new bull market. During the second half of 2006, this time the R.S. charts predicted that Russell 2000 was losing long term future strength, and that large capitalization stocks were gaining leadership into 2007.Relative Strength can be used in the following ways: 1 ) Chart Patterns of Relative Strength with respect to the ... to calculate and predict the consequences of Relative Strength fluctuations in such a way that these can be programmed into many existing Technical Analysis programs. Percentage calculations to read Relative Strength quantitatively: the goal is to classify Relative Strength formations so thatanbsp;...

Title:Patterns of Relative Strength
Author:Isaac Israel
Publisher:Patterns of Relative Strengt - 2007-08


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