Bibliography
by PRASHANT SHAH -
BIBLIOGRAPHY — Aby, Carroll D. J. Point & Figure Charting: The Complete Guide. Grinville, SC: Traders Press Inc., 1996. — Bollinger, John. Bollinger on Bollinger Bands, New York, NY: McGraw-Hill, 2002. — Bulkowski, Thomas N. Encyclopaedia of Chart Patterns. New York, NY: John Wiley & Sos, Inc., 2000. — Carney, Scott M. Harmonic Trading, Volume ... Read more
Asset, Sector and Stock Selection
by PRASHANT SHAH -
Asset class analysis Let us consider a scenario to understand the role of overall market mood or sentiment. Suppose say you are not in a good mood or feeling low and depressed. If someone were to ask you to participate in a sport or a game, what will be your response? The typical response will ... Read more
Sector analysis
by PRASHANT SHAH -
Selection of Denominator We have discussed that the trend of the denominator is an important aspect of relative strength analysis. For the large-cap stocks, the Nifty 50 index would be a logical choice to be used as the denominator or as the benchmark. Even for derivative traders, the Nifty 50 index would be the logical ... Read more
D – Sectors
by PRASHANT SHAH -
We discussed sector performance. Below are important tools that we need to keep in mind regarding sector trends: Using a ranking system based on the above criteria, we have created a tool called D-Sector in TradePoint software. This feature provides an overview of this information on a single screen. If the price trend and relative ... Read more
Relative Strength Indicator (Alpha)
by PRASHANT SHAH -
The ratio chart that we discussed is a tool to perform relative strength analysis. Some other techniques may also be used to plot the relationship between two instruments. Relative Strength –Alpha The relative strength indicator (not RSI) is another widely followed indicator to study relative strength. Unlike ratio charts, we need to define the look-back ... Read more
Relative Strength-Alpha Volatility
by PRASHANT SHAH -
The calculation of RS–Alpha compares the returns of both stocks. But let us consider a scenario detailed below. Suppose say stock A generated 10% returns and Stock B 12% over the same period. Logically, stock B is a better performer or an outperformer. Let us introduce another layer of information here in the form of ... Read more
