One of the most powerful tools available to a trader who watches chart
patterns is something we call relative strenght. Relative Stregth is a
pretty simple concept: How well does this stock, or group of stocks,
peform when compared to the major market indexes over the same period
of time. A popular method of finding trading op****tunities is to look
for the stocks that do not pullback much when the market declines, or
to look for stocks that do not rally as much when the overall market
does. Attatched you will see a chart of AAPL, which over the last
several days has shown a strong degree of relative weakness even as
the overall market rallied. I will be looking to short it should it
trade lower and break the current base.
Charts can be found at http://www.brandonfredrickson.blogger.html
