Successful Stock Signals for Traders and Portfolio Managers: Integrating Technical Analysis with Fundamentals to Improve Performance + Website - Original PDF
نویسندگان: Tom K. Lloyd Sr.
خلاصه: Relative strength performance versus the Standard & Poors (S&P) 500 Index is the key to analyzing any large-cap (capitalization) stock, and is revealing when viewed in Exhibit 1.3. In this chapter, we will exploit the easiest and most powerful examples of technical analysis signals that tracked the demand that took Apple price up so dramatically. Relative strength is simply the comparison of a stock’s price movement to the price movement of the index. This is a simple, straight forward arithmetic ratio. It is then plotted and shown in Exhibit 1.3 as “AAPL: $SPX.” Notice the uptrend in the line created when the stock price is doing better than the index. As long as this line is in an uptrend, it classifies the stock as one that is outperforming the index. The trend line is calculated as a 20-week EMA. If you want to outperform the index this is the signal to watch.