Comparative Strength Analysis

Wyckoff's stock selection process always included an analysis of comparative strength. To identify candidates for long positions, he looked for stocks or industries that were outperforming the market, both during trends and within trading ranges. In short positions, he looked for underperformers.
Therefore, he conducted his comparative strength analysis between a stock and the market, or between a stock and others in its industry.

Practical example: NASDAQ100 vs NVDA

5-year:
ảnh chụp nhanh

1-year:
ảnh chụp nhanh

YTD:
ảnh chụp nhanh

July-August 2022:
ảnh chụp nhanh

Conclusion: we can use outperforming stocks' charts with higher positive correlation as a leading indicator for Indexes!

Best,
Chart PatternsmoshkelgoshaTrend Analysis

Thông báo miễn trừ trách nhiệm