[Tryst]

The Relative Performance Zero Line (52 week moving average of the stock divided by the S&P 500) is a useful guide as to whether a Stage 2A breakout will be successful or not. The Mansfield RS flattened the zero line, but by viewing the unflattened MA you can get additional vital information as to whether it's too early for a stock to breakout or not successfully. As I've noticed through the hundreds of charts I look at daily that if the zero line is still declining sharply when the Stage 2A breakout occurs, that the stock will struggle to advance. It doesn't mean that it won't advance, but that the most successful Stage 2A breakouts occur when the zero line is either flattening or already moving higher.

Hi Isatrader,

when you say the Relative Performance Zero Line, is what I have set up as an indicator below correct to how you have it?

I am using a daily chart below, so does this Relative Performance Zero Line still apply?

(also I am using the Continuous commodity instead of S&P here as my securities in this instance are commodity based ETFs.

   

Thanks