🧵Thread on Relative Strength (RS)
-My favorite technical indicator
-Game changer for my trading strategy
💡Why RS?
-Objective is to outperform Index
-Hence, buy the stock which outperforms Index
-improves strike rate as removes junk stocks
-Different from RSI
@MashraniVivek
-My favorite technical indicator
-Game changer for my trading strategy
💡Why RS?
-Objective is to outperform Index
-Hence, buy the stock which outperforms Index
-improves strike rate as removes junk stocks
-Different from RSI
@MashraniVivek
💡What is Relative Strength?
-Stock outperforming market either by rising more
than the market if uptrend or falling less than market if downtrend
-Or simply, outperforming benchmark
-Goal of RS investing is to buy high & sell higher
-RS irrelevant in Chaotic period like Covid
-Stock outperforming market either by rising more
than the market if uptrend or falling less than market if downtrend
-Or simply, outperforming benchmark
-Goal of RS investing is to buy high & sell higher
-RS irrelevant in Chaotic period like Covid
💡How to use RS?
-Find good candidates using RS for your tested and established trading strategy like CANSLIM
-Look for RS rating 85 & above
-Drawing Trend line on RS & look breakout
-Look for RS line trending up or making highs
-RS is not a strategy but indicator
-Find good candidates using RS for your tested and established trading strategy like CANSLIM
-Look for RS rating 85 & above
-Drawing Trend line on RS & look breakout
-Look for RS line trending up or making highs
-RS is not a strategy but indicator
-In Market Downtrend, helps to give some great names
-Pro Tip -> look for stock where RS is 85 or high when in base or handle
Eg: Screenshot taken in July when #LANCER was 200 and now it’s 405 in 3 months
-Please note look for other fundamentals filters to increase conviction
-Pro Tip -> look for stock where RS is 85 or high when in base or handle
Eg: Screenshot taken in July when #LANCER was 200 and now it’s 405 in 3 months
-Please note look for other fundamentals filters to increase conviction
💡Which Tools to use?
🔨 To Filter @MarketSmithIND
-Use MS to filter the stocks based on ratings.
-RS rating in MS is different from RS line
-RS rating of 85 means stock outperformed 85% of other companies in the market whereas RS line is trend against Benchmark like NIFTY50
🔨 To Filter @MarketSmithIND
-Use MS to filter the stocks based on ratings.
-RS rating in MS is different from RS line
-RS rating of 85 means stock outperformed 85% of other companies in the market whereas RS line is trend against Benchmark like NIFTY50
🔨 To plot on Trading view
-RS Line indicator to plot on Trading view chart
-I use TraderLion’s Relative Strength by @TraderLion_
-Change the setting as per time frame and benchmark
-Details as how to use
youtube.com
-RS Line indicator to plot on Trading view chart
-I use TraderLion’s Relative Strength by @TraderLion_
-Change the setting as per time frame and benchmark
-Details as how to use
youtube.com
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