| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 10/7/2004
Posts: 5
|
Could you please review RSMA as PW has it set up with Charts With Notes on
2/25/05. What is the meaning of the blue line (10 bar MA) staying above the
red line (40 bar MA). Thanks Bob.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
Both are moving averages of the Relative Strength line. When a relative strength line moves up, it means that your stock is outperforming the relative strength benchmark (PW was using the NYSE as his benchmark). When a relative strength line moves down, it means that your stock is underperforming the relative strength benchmark.
Whenever you use two moving averages (one shorter, one longer), when the shorter term MA is above the longer term MA, it is generally a sign that the underlying line (in this case, relative strength) is in an uptrend.
- Doug
Teaching Online!
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
The note that has Peter Worden's RSMA setting is the 2/25/05 note on CK.
He set up a relative strength line to the NYSE and then made this line not visiable. He then applied his two moving averages to the RS line.
As Doug explained above, since July of last year, CK has the 10 of RS above the 40 of RS. If you were to look at the RS line they are applied to, you should see it generally moving up. This means that CK has outperformed the NYSE for that period.
In order for the 10 to get below the 40 the RS line would have to change to a downtrend signifying the NYSE outperforming CK.
- Craig
Here to Help!
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
I arranged for a PDF of a great monograph on RSMA to be available via email. Send an email to support@worden.com and request the RSMA MONOGRAPH. They will email you a .zip file of a PDF.
I recomend anyone interested in the RSMA technique for exits check it out.
- Craig
Here to Help!
|
|
|
Guest-1 |