19
THE CONCEPT OF RELATIVE STRENGTH
Questions
Subjects to Be Covered
What is relative strength?
Interpreting relative strength
Comparing relative strength to the absolute price
Using trendlines with relative strength
Comparing the relative action of two different stock markets
1. Which of the following statements is true?
A. Relative strength measures the relationship between two securities.
B. The relationship between a stock and a market average is the only useful way of using relative strength.
C. Comparative relative strength includes the RSI.
D. A and B
2. When the RS trend reverses to the downside, it is safe to conclude:
A. That the price will sooner or later follow suit
B. That it is probably a whipsaw since the price has not confirmed ...
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