(This post was last modified: 2016-05-28, 05:06 PM by kero.)
RE: US Stocks - Watchlist and Discussion
This goes in the same direction of some thoughts I had since long time.
isatrader Wrote: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.
That's quite normal: if the RS line breaks above a descending MA, that just means that eventually, the stock's RS is changing from bear to flat, not from bear/flat to bull. That's why I had the feeling that the Mansfield method could be misleading and that in the end, as you say, the basic RS gives a better view on the global situation of the stock. I suppose that you also use it for sectors ?
Anyway. Thank you for your comment.