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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: wizzards wine who wrote (1615)	3/10/1998 9:31:00 AM
From: Ms. X	Read Replies (2) \| Respond to of 34809

Thank you for breaking that down for me. When we refer to a stock who's RS just turned positive, we are talking about it changing from O's to X's whether it is on a buy or sell signal. It is like the momentums. If you have a stock that has been under performing the market (which is what the RS calculates) and it flips to positive (reversing up into X's) you are at the beginning of the upward trend. Something turned that stock positive. We like to find stocks that have just done this. The reverse is true. If you have an RS either on a sell or buy signal and it reverses from X's to O's you know it is going to start under performing. A stock could have an RS in a buy signal and in X's for some time and we would consider this strong but for getting in at the bottom an RS just turning to X's is a tasty thing. Ohhh, ahhhh even. If you own a stock who's RS just went to O's....oops, check the stats and cover your bases. Now, if a stock is on a sell signal and in X's but reverses to O's to give another sell signal-you know the answer to that. Yikes. AGPH just turned RS positive last month and seems to still be gaining strength. Obviously if an RS is on a buy and it reverses to O's but never gives a sell signal but then reverses back to X's, it is a stronger performer than those who did give a sell signal. However, you still take the signal on the reversal up. Kay? Jan