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21st Century Point and Figure: New and Advanced Techniques for Using Point and Figure Charts by Jeremy du Plessis

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Chapter Eight. Advanced Analysis of Relative Strength and Spreads

Drawing relative strength charts as Point and Figure charts enhances the analysis of them. The techniques explored so far in this book have all been with Point and Figure charts of price, so this chapter is dedicated to applying these advanced techniques to relative strength and spreads.

Relative strength27 is used mainly in the equity markets and is a ratio chart of the stock to its index. A rising relative strength chart shows the stock is performing better than the index and a falling chart shows it is performing worse.

Spreads are used mainly in the commodity markets and are the difference between two related commodities or two contracts of the same commodity. Although these ...

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