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Sector and Industry Leaders

I am trying to focus more on entries that encompass sector and industry leaders. Stock Charts data shows daily, weekly, monthly and other specific days of leadership and ranking. These are constantly changing. Is there a typical recommended time frame to identify firm sector/industry leadership that I can enter with specific stock picks ?

Comments

  • markdmarkd mod
    edited June 24
    Assuming you are looking for stocks to hold for a while (weeks or months), I think I would look for improving relative strength over about a three month period. So you would look for an improving SCTR Line over that period (e.g. SCTR line > rising sma63), or set the RRG tail for that time frame and look for things in or headed toward the top right quadrant.

    Alternatively, you could add the Price Performance indicator to your charts with a 63 day sma ( or 13 weeks on a weekly chart). For the sector etfs the parameters would be $SECTOR:$SPX. For industries, use $INDUSTRY:$SECTOR. For the individual stocks, use $SYMBOL:$INDUSTRY (or you could cut to the chase and try $SYMBOL:$SPX). On each chart, look for the Price Performance line (which is relative strength, or RS) to be above the rising 63 sma. The scale values don't matter - just look for improving slope. The closer the line is to a crossover of the MA, the better (in other words, both have been falling and now the line is crossing above the ma). On the chart itself, you want to see some good buying - a few tall bars with above average volume and shallow pull backs on less volume.
  • Great Thanks..I finally have a strategy !
  • Well, it's a beginning.
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