[isatrader]

Thanks for the comments Isatrader. I don't feel disparaged ;-) I had to look for the meaning of that word because I didn't know it. Learning every day...

Sorry, it's easy to forget you not speaking to a native English speaker when you write it so well. I will try to keep the obscure words to a minimum ;-)

2. the measurement of relative performance/strength. There is a very interesting work of Clay Allen CFA about P&F relative strength charts. It's called 'Winning the performance game'. If you google on it, you can probably download it for free.
As Weinstein's writes (pg 109): "One week the relative strength can be positive, while the next week it is negative. The true picture forms only over a period of time". In other words, the trend of the RS is important.
And that's a advantage of the P&F RS charts. But I also notice it on the RS measurement of stockcharts.
On both charts one can see that the RS is bottoming. Measuring WIX vs the equal weighted SPX (SPXEW) is even clearer in my opinion.
In other words, could we refine the RS reading for a quicker entry? I think so. And perhaps that could be a advantage if we don't face any opportunity costs?

The RS trend on Weinstein method charts is done using a 52 week MA on the RS chart versus the S&P 500. This is what we call the "zero line" as it's what is used to create the flat Mansfield RS zero line used in the chart examples in the book. See example here: http://stageanalysis.net/forum/showthread.php?tid=31

But on here we've been able to take the zero line concept further, as my studies have indicated that the angle of the 52 week RS MA is also critically important and must be either flattening or rising on the Stage 2A breakout, for the best probabilities of a successful breakout. However, if the 52 week RS MA is still declining, or the breakout occurs while still below the 52 week RS MA, then the probabilities of a failed breakout are much greater.

So the "zero line" I talk of in the RS of the charts is the one year moving average, and hence one year trend of the relative performance versus the S&P 500 and so gives you the same information as the P&F RS charts, as it filters out the noise of the daily RS moves.