Ranked Relative Strength by Jeff Parent
ARTICLE SYNOPSIS ...Ranked Relative Strength by Jeff Parent
How do you know which sectors to trade?
Here's a system that will identify the
strongest sectors so you know what you
should be chasing.
When Charles Dow started
recording his average in
the late 19th century (Figure
1), the markets were
essentially a one-horse
the blue-chip segment of
the markets and were the most actively traded. Dow used them as
a proxy to gauge economic conditions.
He measured the simple average price of
a basket of predominantly railroad stocks
and compared the result to the 100 level....