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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: David N. Jones who wrote (22779)	8/12/1999 9:56:00 AM
From: Bwe	Read Replies (1) \| Respond to of 99985

Hi David, I use RS as practiced in p&f in a number of ways. Because of the longer term nature of p&f RS signals, RS is quite an important tool for me in a number of ways: -Stocks that give new RS buy signals are research and potential purchase candidates. Stock's moving down in RS rank raise red flags for further chart and fundamental inspection. -A stock whose RS has turned bullish after a long period of being bearish is always worth a look. The converse is also true. -RS should always be used and compared with a stock's long term trend lines, the Bullish Support Line (BLSL) and Bearish Resistance Line (BRRL). A breakdown in one or the other (RS or Trend lines) give important clues. -DWA's RS "History" feature can give you important clues as to how past RS signals have influenced post signal chart action. This is a great feature. Remember, David, that actual RS Buy or Sell signals are longer term signals. 2 - 2 1/2 years on average. For shorter term clues as to short - intermediate term future price action, you can look to RS column moves within the basic RS Buy or Sell signal. For instance, a stock that is on a RS Buy signal and in X's on it's RS chart would be a B+ rating. A move into a column of O's would move the rating to B- and provide a clue that the stock will likely be an underperformer for a qtr. or so....give or take. Lots of Bank stocks turned B- a few months ago. Conversely, if a stock with bearish RS in a column O's (S-) moves into a column of X's (S+), those types of stocks look good for the next qtr or so....give or take. See many of the cyclical stocks in May. Hope this has been of some small help. Bruce