Part 1: MetaStock Plugins Australia
The Relative Strength Comparison (RSC), the Key to Trading by Sectors.
Everyone knows that, no matter how badly the market may seem to be,
some one is making money. There are always profitable MetaStock plugins
Australia out there, but how do you identify them? MetaStock plugins
Australia are the tools you need to make the most of any market. Yet,
if you're like most people, even though you've invested in MetaStock
plugins Australia , you probably don't use it to its full potential.
Within this report I'll show you how you can find these profitable
trading opportunities with MetaStock plugins Australia . You'll be
able to make use of techniques usually only used by professional traders,
such as the Relative Strength Comparison. The basis of the RSC (Relative
Strength Comparison) is found in sector analysis.
What is Sector Analysis With MetaStock Plugins Australia?
Sector analysis is a top down stock selection method. Market sectors
that are expected to outperform the rest of the market are identified,
through methods such as the Relative Strength Comparison with MetaStock
Plugins Australia , and then stocks from those sectors are selected.
The idea is that stocks selected from superior sectors will perform
in the same fashion as their sectors. This follows the principle that
money generally flows from under-performing areas of the market to
more profitable areas, a truth that has be tested by many traders.
my studies have consistently shown that two equally bullish
charts will perform far differently if one is from a bullish
sector while the other breakout is in a bearish group. The favourable
chart in the bullish group will often quickly advance 50 to
75 percent while the equally bullish chart in a bearish group
may struggle to a 5 to 10 percent gain .
- Secrets for Profiting in Bull and Bear Markets, Stan
Weinstein, (McGraw-Hill 1992)
How can you use Sector Analysis within MetaStock plugins Australia?
To identify market sectors that will outperform the market; you must
first compare the strength of each sector against a chosen market
index such as the S&P/ASX200 for the Australian market, or the
Straits Times Index for Singapore. This becomes easy with MetaStock
plugins Australia. Once you've done this, you must rank the sectors,
and discover which ones are performing the strongest. After the strongest
sectors have been identified, you can see which securities are within
the sectors. Using MetaStock
plugins Australia, these individual securities can also be ranked
against their respective sectors, which effectively allows you to
single out the best performing sectors.
The Relative Strength Comparison (RSC) is the best way to compare
the strength of one security against a market index. The RSC compares
a security's price change with that of a "base" or benchmark security.
When plotted on a chart using MetaStock plugins Australia , the RSC
line can be interpreted as follows:
An increasing RSC indicates that the security is performing better
than the base security.
A RSC that moves sideways indicates that both securities are performing
A decreasing RSC indicates that the security is performing more
poorly than the base security.
It is important to note that just because MetaStock plugins Australia
shows RSC may be rising in value, the security isn't necessarily rising
in value as well. This rise only indicates that the security is performing
better than the base security. For example, a security may be falling
in price, but it may not be falling as fast as the base security.
This would result in a rising RSC. Conversely, if the MetaStock plugins
Australia shows the RSC is falling the security may not be reducing
in value; instead it may be that it's price is increasing at a slower
rate than the base security.
In the second and third sections of this article, you will learn how
to use the various features of Metastock
plugins Australia to calculate the RSC, and locate the best sectors
to choose securities from.
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