Study Guide for Technical Analysis Explained Fifth Edition, 5th Edition

19

THE CONCEPT OF RELATIVE STRENGTH

Answers

1. A. B is incorrect because there are many ways to use the concept of relative strength. Comparative relative strength should never be confused with the relative strength indicator.

2. C.

3.

4. D. Because you need to see more evidence that the RS has turned, but more importantly, evidence that the stock itself is now in an uptrend.

5.

6. C. The declining RS line was evidence, but not conclusive evidence as asked in the question. For example, there was no evidence of an actual reversal in the absolute ...