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

To: watcher who wrote (3157)	5/25/1998 9:28:00 AM
From: wizzards wine	Respond to of 34811

Hi watcher, RS refers to "relative strength", RS sell signal is given when a double bottom is formed on the RS chart...However this can take a long time and we more often look for the RS to just reverse into a column of O's, which gives the indicator that the stock is under preforming the DOW. RS is calculated by taking the stocks price and dividing by the Dows close then multiplying by 1000. This resulting number is then used to creat a P&F chart for the RS indicator. I have no idea what RS sell alerts or RS buying climax's are though from Tom Dorsey's book. Hope that helps. Later Preston

To: watcher who wrote (3157)	5/25/1998 9:40:00 AM
From: Bwe	Read Replies (1) \| Respond to of 34811

Hi Watcher, I'm glad you found us over here on the P&F thread. Take some time and read through some recent posts and you'll quickly see that there's a lot to learn here and we kind of have fun doing it. Welcome. Getting right to your questions, RS stands for Relative Strength. The important difference between IBD's RS calculation and p&f RS is IBD's RS ranking is a measure of how a stock's price performance compares to all other stocks. An RS rank of 85 means that a stock has outperformed 85% of all stocks in IBD's tables. In p&f charting, RS is calculated by dividing a stock's price by the Dow on a weekly basis and charting the results as you would a stock's price. You are comparing a stock's price performance to a market average, in this case, the Dow, and attempting to see if a stock is doing better or worse than the market. The RS trend is what's important here and when a stock's RS chart is rising, a stock is doing better than the market, when it's falling, it's doing worse. In p&f, RS is one of the key factors used to determine the main trend of a stock. RS signals tend to last for a long time, 2-2 1/2 years on average, so when a buy or sell signal is given, it really is important to pay attention. Chartcraft keeps track of RS Buy and Sell Alerts. These are stocks that are one box away from giving a buy or sell signal. Since movements on RS charts are much more infrequent than the movement on a regular p&f chart, it could take anywhere from a week to a few months for that next move. The RS Buy/Sell alert puts the investor on notice. A Buying Climax (BC) is when a stock makes a new 52 week high but closes down for the week. It's a sign of distribution and sometimes can be the top in a stock for a while. At the end of April the market had a record 208 BC's and that was a bad sign for the market. Selling Climaxes (SC) are when a stock makes a new 52 week low yet manages to finish with a gain for the week. SC's are signs of a bottom and accumulation. Sometimes a stock can have more than one BC or SC and that will further reinforce a top or bottom a stock is putting in. Take care, Watcher, and I hope to see you on the thread in the future. Bruce