Relative Strength and Applying it

What to Buy??

Its a hair-pulling experience wondering which stocks to buy (Long) if you are expecting a reversal or trend continuation.

Step 2 of our Wyckoff method provide ease to our trading community on stock selection.

This is simply because we apply the little rule of Relative Strength (RS) for stock selection.

SG market corrected -423pts from its 2018 high and its looking to reverse.

Which bank would you choose to trade? UOB, OCBC or DBS?

Yes, its UOB.

Why? UOB price action is telling us that selling has eased while buying is picking up. From the charts, you could see UOB has stopped hitting new low whereas DBS and OCBC continuing see new lows.

Just by using our proprietary RS indicator, boxed in red, community members who have joined our Wyckoff course have simplified this RS measuring and the whole stock selection.

On our proprietary RS indicator, you can see that UOB RS is upward sloping while both DBS and OCBC are sill downward sloping.

Learn the full Wyckoff method, and have the RS indicator and its proprietary codes when you join us at our upcoming Wyckoff trading course in October 2018.

What is Relative Strength?

In short, RS is the performance of a stock against another stock, index or instrument. A higher RS reading means the stock is experiencing stronger performance (higher demand) against the compared instrument.

Disclaimer Applies.

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI), annual performance during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...

Week Ahead: US Indices Momemtum in Question

Week Ahead: 10 March 2025 Key event this week was U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX): The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI): The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply

Market Technician

Search This Blog