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Non-Tech : The Critical Investing Workshop

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To: Clappy who wrote (35175)4/2/2001 6:03:01 PM
From: AllansAlias  Read Replies (1) of 35685
 
clappy,

What you are referring to is an indicator called Relative Strength Index or RSI; developed by one of my favourtite TA heads, Welles Wilder. It is one of the two or three indicators that I bother looking at, but it is perhaps poorly named. It performs no comparison with another instrument. The term "relative strength" is more generally applied in the sense of looking at one instrument vis a vis another.

This is what I was looking at. In the case of the SOX versus the NASDAQ composite, what interested me was to look at the performance of the SOX with the dung as a constant.

Cheers
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