Strength and weakness ... these are two very important conditions to monitor when trading or investing.
One good way to see this is to set up two Relative Strength time periods.
What time periods are good to use?
A 9 day and a 30 day RSI are good time periods to plot against each other. We zero base our RSI indicators so it is easy to see when they are positive or negative. For those using a standard RSI indicator, a level of 50 is equivalent to our level of 0.
Today's chart showing the NYA Index with its two RSI levels is pretty easy to read. When both indicators are positive and the 9 RSI is ABOVE the 30 RSI, then the market's strength is increasing and pushing the market higher.
Take a look at when that occurred on this eight month chart. Each time the 9 RSI trended higher and above the 30 RSI, the market had good up moves.
If you enjoy our charts and data, give some thought to joining us as a subscriber ... we'd enjoy having you as one of our members.
