WY-06-25 / 03
Relative Performance During Advances and Pullbacks
Decisions, Execution & Validation
Lesson / WY-06-25
Comparing only cumulative returns between the start and end of an observation period hides differences in the path taken during the holding period. Two instruments may both outperform the benchmark over the entire window, yet one expands sharply when the benchmark rises and falls sharply when it pulls back, showing high sensitivity. The other may lead only modestly during advances but barely retreat during pullbacks, suggesting less supply or better buying support. Similar ending returns do not imply equal holding risk or structural quality.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
7 lessons · Chapter contents
01Purpose and Comparison Universe of Relative Strength Analysis↗02Comparing an Instrument with the Overall Market, Industry, or a Suitable Benchmark↗03Relative Performance During Advances and Pullbacks↗04Relative Strength Ratios and Swing Comparisons↗05Relative Strength Analysis Versus the RSI Indicator↗06Joint Screening of Relative Performance, Structural Location, and Potential Risk↗07From Initial Screening to Trade Execution↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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Point-and-Figure Charts and Price Target Estimation
The Nine Buying and Selling Tests and Trading Scenarios
