RE: US Stocks - Watchlist and Discussion
(2016-05-28, 02:50 PM)kero Wrote: Interesting: I see that you prefer using the basic Relative Strength, instead of Mansfield's Relative Strength (though still using it's 52 MA as reference). I could never manage to decide which one is better and Weinstein isn't that clear about that point in its book. He uses Mansfield because its charts have Mansfield but that's all. At the moment, I mainly use Mansfield but also have a look on the basic Relative Strength.
Any comment about that ?
It's something that I asked him about a few years ago and he agreed with me, as I found from my own research of thousands of weekly stage analysis charts that the basic relative performance with the 52 week MA visible is much more useful imo than a flat zero line, as it gives an additional reference point, in that you can see the slope of the MA (zero line), which is critical imo. As from my studies I've found that if the relative performance MA is sloping downwards when the RS line breaks above it, then the Stage 2A breakout has a much higher chance of failure than if the relative performance MA is flattening or rising. So, I've made it one of my conditions in identifying the A+ breakouts that the relative performance MA should be flattening or rising only, as I'm only interested in finding the stocks with A+ potential.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.