Relative Strength and Applying it

What to Buy??

Its a hair-pulling experience wondering which stocks to buy (Long) if you are expecting a reversal or trend continuation.

Step 2 of our Wyckoff method provide ease to our trading community on stock selection.

This is simply because we apply the little rule of Relative Strength (RS) for stock selection.

SG market corrected -423pts from its 2018 high and its looking to reverse.

Which bank would you choose to trade? UOB, OCBC or DBS?

Yes, its UOB.

Why? UOB price action is telling us that selling has eased while buying is picking up. From the charts, you could see UOB has stopped hitting new low whereas DBS and OCBC continuing see new lows.

Just by using our proprietary RS indicator, boxed in red, community members who have joined our Wyckoff course have simplified this RS measuring and the whole stock selection.

On our proprietary RS indicator, you can see that UOB RS is upward sloping while both DBS and OCBC are sill downward sloping.

Learn the full Wyckoff method, and have the RS indicator and its proprietary codes when you join us at our upcoming Wyckoff trading course in October 2018.

What is Relative Strength?

In short, RS is the performance of a stock against another stock, index or instrument. A higher RS reading means the stock is experiencing stronger performance (higher demand) against the compared instrument.

Disclaimer Applies.

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

DBS Group Holdings (D05): Upward Move Expectations

DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply

Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator. Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply

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