Relative strength is a strategy used in momentum investing and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
1/n
A Mega Thread on RELATIVE STRENGTH
A method to improve
Stock Selection and Conviction in trades
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@JayneshKasliwal
Relative strength is a strategy used in momentum investing and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
1/n
This is basically used for Identifying the strongest sector , stocks , asset class by comparing the relative performance
2/n
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 65 period
3/n
Using 65 as period and base as NiftyOne can use 123 or 250 as period depending upon your time frame of holding
If your view is short term then 65 works great and mid to long term can use 123 and 250 .
@kuttrapali26
4/n
Helps to filter out stocks in good momentum and that are giving better returns than nifty
These stocks tend to outperform the market.
These are potentially superstocks
65 period signifies 3 months of trading
In 3 months we have around 65 trading days
5/n
0 line that helps to differentiate between underperformer and outperformer
>1 Outperforming the markets
<0 Underperforming the markets
When 65 RS Goes above 2 its too much heated and generally goes into consolidation or pullback
@vivbajaj
6/n
Nifty Falling 10% but your Stock is not falling and staying sideways Means it has Strength to fight against the falling market.
When Market Recovers it already had strenght and hence it will moe more faster
7/n
Most Popular - Stock vs Index
(Example – Reliance Vs Nifty 50)
Stock Vs Stock in same sector
(Example –LTI Vs Infy)
Stock Vs Stock across sectors
(Example –Reliance Vs TataMotors)
LTI
Comparing IT stock vs NIFTY vs IT index
8/n
(Example – NIFTY50 vs S&P 500)
Relationship across sectors
(Banking vs Telecom)
Relationship across asset classes
(Gold Vs Dow)
Relationship across segments of the market
(Mid-cap index vs Small cap index)
9/n
S&P500 Vs Nifty
The Highlighted part means that
Nifty Infra is outperforming the nifty 50 index in that period but underperforming the Psu bank index
That indirectly means that psubanks have outperformed both nifty and nifty infra and hence is the strongest
You can use CNX IT , PHARMA , INFRA to compare your stocks to specific Sector
11/n
Key point: Relative Strength tends to select high beta or low beta stocks, depending on the market trend.
When that trend undergoes a major reversal, Relative Strength will see its peak underperformance.
Because tops and bottoms are sharp and quick.
14/n
COMPARATIVE RELATIVE STRENGTH
One can Simply divide Stock Price by Index Price
This is known as ratio chart
15/n
use "/" Symbol to plot the ratio chart in symbol search
Reliance vs BalajiAmines
16/n
The RS calculates the relationship between price of the past “N” period in our case 65
The CRS calculates the relation on daily basis price change and plots
CRS will show you the trend of the particular day while RS shows you trend of past 65 days
18
Example 1
Nifty Falls 10 % over a period but a stock a stock gains 10% . What does that mean ?
Nifty Stays Flat over a period but a stock gains 10% . What does that mean ?
Nifty Rises 10% over a period but your stock Rises 50% .
What does that mean ?
19/n
Buyers are still interested in the stock/ Sellers are weak and when market recovers these are the stocks which move Ahead much faster as they already have strength .
Stocks that are showing strength in weak market will outperform in strong market
20/n
NIFTY Fallen 11% from highs
CHAMBALFERT : Stays Flat
MANINFRA : Up 22% in weak market
PVR : Falls More than 25%
21/n
Screenshot From Telegram channel
Technical Test given to followers to select the best stock
A) outperformer as + RS
B) and C) At support and hence most chose that as an answer as swing trading bet
Over the next 10 days
A) JSL HISAR gave a + Return of 18%
22/n
More from JayneshKasliwal
Detailed Study of Stocks that became 5X in past 2 Years
A Mega Thread🧵
Concepts :
Relative Strength
Stage Analysis
Retweet and Comment If you want a PDF
We have Got around 86 Stocks that became 5X in 2 years
These Belonged to various sectors and Groups
Excel Link for List of Stocks
https://t.co/jESOUMlbpd
( As on 30th March 2022)
[1/n]
All stocks had few things in common :
Stocks doubled Before entering into Stage 2 Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after Stage 2
60 Stocks had market cap less than 1000 Cr
Examples : OLECTRA , PGEL
[2/n]
So What is Relative Strength ?
Relative strength is a strategy used in momentum investing and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
[3/n]
How to Apply ?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
Use Weekly Chart
4/n
A Mega Thread🧵
Concepts :
Relative Strength
Stage Analysis
Retweet and Comment If you want a PDF
We have Got around 86 Stocks that became 5X in 2 years
These Belonged to various sectors and Groups
Excel Link for List of Stocks
https://t.co/jESOUMlbpd
( As on 30th March 2022)
[1/n]
All stocks had few things in common :
Stocks doubled Before entering into Stage 2 Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after Stage 2
60 Stocks had market cap less than 1000 Cr
Examples : OLECTRA , PGEL
[2/n]
So What is Relative Strength ?
Relative strength is a strategy used in momentum investing and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
[3/n]
How to Apply ?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
Use Weekly Chart
4/n
More from Rs
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**Thread on Bravery of Sikhs**
(I am forced to do this due to continuous hounding of Sikh Extremists since yesterday)
Rani Jindan Kaur, wife of Maharaja Ranjit Singh had illegitimate relations with Lal Singh (PM of Ranjit Singh). Along with Lal Singh, she attacked Jammu, burnt - https://t.co/EfjAq59AyI
Hindu villages of Jasrota, caused rebellion in Jammu, attacked Kishtwar.
Ancestors of Raja Ranjit Singh, The Sansi Tribe used to give daughters as concubines to Jahangir.
The Ludhiana Political Agency (Later NW Fronties Prov) was formed by less than 4000 British soldiers who advanced from Delhi and reached Ludhiana, receiving submissions of all sikh chiefs along the way. The submission of the troops of Raja of Lahore (Ranjit Singh) at Ambala.
Dabistan a contemporary book on Sikh History tells us that Guru Hargobind broke Naina devi Idol Same source describes Guru Hargobind serving a eunuch
YarKhan. (ref was proudly shared by a sikh on twitter)
Gobind Singh followed Bahadur Shah to Deccan to fight for him.
In Zafarnama, Guru Gobind Singh states that the reason he was in conflict with the Hill Rajas was that while they were worshiping idols, while he was an idol-breaker.
And idiot Hindus place him along Maharana, Prithviraj and Shivaji as saviours of Dharma.
(I am forced to do this due to continuous hounding of Sikh Extremists since yesterday)
Rani Jindan Kaur, wife of Maharaja Ranjit Singh had illegitimate relations with Lal Singh (PM of Ranjit Singh). Along with Lal Singh, she attacked Jammu, burnt - https://t.co/EfjAq59AyI
Tomorrow again same thing happens bcoz fudus like you are creating a narrative oh Khalistan. when farmers are asking MSP. (RSS ki tatti khane wale Kerni sena ke kutte).
— Ancient Economist (@_stock_tips) December 5, 2020
U kill sikhs in 1984 just politics. To BC low IQ fudu Saale entire history was politics.
Hindu villages of Jasrota, caused rebellion in Jammu, attacked Kishtwar.
Ancestors of Raja Ranjit Singh, The Sansi Tribe used to give daughters as concubines to Jahangir.
The Ludhiana Political Agency (Later NW Fronties Prov) was formed by less than 4000 British soldiers who advanced from Delhi and reached Ludhiana, receiving submissions of all sikh chiefs along the way. The submission of the troops of Raja of Lahore (Ranjit Singh) at Ambala.
Dabistan a contemporary book on Sikh History tells us that Guru Hargobind broke Naina devi Idol Same source describes Guru Hargobind serving a eunuch
YarKhan. (ref was proudly shared by a sikh on twitter)
Gobind Singh followed Bahadur Shah to Deccan to fight for him.
In Zafarnama, Guru Gobind Singh states that the reason he was in conflict with the Hill Rajas was that while they were worshiping idols, while he was an idol-breaker.
And idiot Hindus place him along Maharana, Prithviraj and Shivaji as saviours of Dharma.
