Relative strength.
We talk about it all the time — and for good reason. If these last few years have reinforced anything, it’s the power and efficacy of incorporating relative strength into our approach.
You can never outperform if you don’t hold assets that are doing exactly that, outperforming.
Given that trends are more likely to continue than reverse, if a group of assets have outperformed their alternatives, it’s more likely than not they’ll continue to do so.
One of the primary components of our work as technical analysts here at All Star Charts is finding favorable opportunities through relative strength: stocks, commodities, sectors, and, more recently, in cryptocurrencies.
As technicians, we have a ton of resources and data at our disposal. Every day, we’re running our own internal scans through a variety of proprietary data feeds and platforms.
We like to really get our hands dirty in this analysis. For those wanting a simple workaround, here’s a little life hack.
