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.