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Relative Strength vs Internal strength

Abuelo
Abuelo ✭
in SharpCharts
Considering the Indicators available on StockCharts .... which would be considered best for measuring Internal Strength and which would be considered best for measuring Relative Strength?

Thanks ....

Best Answer

  • markd
    markd mod
    Answer ✓
    Well, you would probably get as many opinions as there are subscribers.

    For relative strength, assuming you mean versus an index, Price relative, or Price-Performance (e.g. IBM:$SPX) is probably the most useful.

    For internal strength, I think you should strongly consider the SCTR, which essentially measures rate of change over several time frames. A lot of people like RSI, which in an up trend indicates strength above about 40. MACD Line above 0 is also generally considered a good sign of strength.

    But anybody else feel free to chime in.

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