Universe RSI Chart
Relative Strength Index
This long standing technical analysis tool developed and introduced by J. Welles Wilder in 1978 as a momentum indicator utilizing the traditional 70/30 overbought and oversold levels. From there, Andrew Cardwell took hold and studied the indicator vigorously to find it not only helped to identify the relative momentum on the way up and the way down; it also is an excellent trend following indicator once you learn how to use it to its fullest extent.
What am I looking at? Here is a quick video rundown of what you will find on this page and why it helps
One of the traditional ways of measuring broad strength has long been measuring the participation of the market through various breadth indicators. It is something that was used more more when most of technical analysis was done by hand. It lost some of its attention when technology took technical analysis online; but it hasn’t lost its usefulness from a relative strength perspective, specially when you have the ability to apply it more broadly across the segments of the markets. This chart and grid set is a compilation chart of the most common breadth indicators that I have used and shared over more than a decade to give you a one stop rundown of participation
Relative Comparative Chart
Relative Comparative Charts are another important pillar in the search for relative strength and also one of the simplest. All you do is divide the index we are looking at by whatever the comparative index is. If it is going up, the index on this page is leading. If going down it is lagging, just that simple. This chart compares this pages equal weight index to all of the relevant indexes to our process.
Percentage Making Highs/Lows Chart
Percentage Making New Highs and New Lows is a unique way to look at a short term breadth extreme in any segment of the equity markets on both the upside and the downside. Looking over this chart for just a few seconds quickly reveals when a large enough portion of the stocks in any segment are hitting these levels to forge a decent short term bottom or top. This is a complement to our other short term breadth measures above.
Sector RS Rankings
Breaking our universe down to the sector level gives us the first level of pure equal weighted sector relative strength. Combining the benefits of a front weighted relative price performance calculation based specifically on those securities or indexes included in the list with the participation benefits of using equal weighted indexes we build to dampen the effects of mega cap moves that can distort the true outlook of the entire sector or subsector. The Default is a three month front weighted relative strength calculation, with buttons available to extend the time frame to a six month picture as well as the more traditional twelve month or one year relative strength calculations.
Subsector RS Rankings
The Subsector level, our next step down, gives a reasonable way to go deep than sectors but to the point of having to deal with 150+ industries or every little theme that pops up over the horizon. While we will cover some of the more popular themes in our specialty relative strength lists, this give us a strong list to follow regularly so we can consistently stay on top of what is going on across the market. Just one level deeper can mean all the different in spotting where the attention is currently. The Default is a three month front weighted relative strength calculation, with buttons available to extend the time frame to a six month picture as well as the more traditional twelve month or one year relative strength calculations.