Support and Resistance Trading Forum

Re: TRADE LESSON: LEARN THE RELATIVE STRENGTH OF A
By:Deadlydoggy
Date: 11/10/2009, 12:58 am

Often when a stock cannot catch a bid or rally higher with the major indexes it is signaling weak relative strength. Stocks that have or signal weak relative strength compared to the market are good candidates to be sold short on bounces. For example, FSLR the leading solar stock has not been able to rally with the NSADAQ or the other major indexes. These are the kind of stocks that you can watch for small bounces and take short positions. Remember it is prudent to always use stops as stocks can do anything at anytime.

not a good example to use... the stock is to smalll and means zero to what and index does or is doing....

now if you had instead said intc to nasdaq or abx to the price of gold you migh have more successssss!!!!!!

cheers

dd

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