WY-06-25 / 06
Joint Screening of Relative Performance, Structural Location, and Potential Risk
Decisions, Execution & Validation
Lesson / WY-06-25
Relative strength affects decisions only when placed within a tradable structure. If a long candidate is in late accumulation or a reaccumulation range within an uptrend, holds its Spring test, LPS, or range support during a market pullback, and leads the advance when the market recovers, relative strength and structural direction support each other. If a short candidate is in late distribution or a redistribution range within a downtrend, cannot regain its LPSY or range resistance during a market rebound, and leads the breakdown when the market weakens, that relative weakness connects with a specific trading location.
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
