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Registered User
Joined: 5/28/2008
Posts: 3
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Folks hi, i'm new to technical analysis. In one book i read, which was by Stan Weinstein he said you could chart the RSI of a stock versus the market to see if the stock was over or underperforming versus the market.
The book was written in 1987 and he was using mansfield charts and when the stock was out performing the market it trending up and was above zero. When it was underperfoming it was trending down and below zero. He also used a 30 week MA for investing and 10 week MA for trading.
In my TC2000 v7 I have my charts setup with the same MA's my question is how do i setup up the RSI on my worden charts to show how a stock is performing versus the market or can it be done in this manner?
all help much appricated thx.
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Administration
Joined: 9/30/2004
Posts: 9,187
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You could plot Relative Strength (not RSI) and set the RS symbol to SP-500, NYSE, DJ-30 or any other market index.
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Registered User
Joined: 5/28/2008
Posts: 3
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Thanks, so if i set plot Relative Strength to the SP-500 how do i read the chart.
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Administration
Joined: 9/30/2004
Posts: 9,187
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The values are not important. It's a ratio of the price of the stock and the comparison symbol.
When the line is moving up, the stock is outperforming the market index. When the RS line is moving down, the stock is underperforming.
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Registered User
Joined: 5/28/2008
Posts: 3
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I understand thank you that is all the questions i have for now.
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