Skip to main content

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.

Most Popular

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

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...

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...