In today's stock market analysis, we take a closer look at the relative strength of Gold and Silver against the market and how we analyse better opportunities using this indicator. We also look at how divergence can give clear warning signs on when to take profit, when to lighten up in your positions and trend direction change.
If you have not had the chance to go through our educational videos, we have a section on relative strength, how it is calculated and when to use it. Check this page out so this video is beneficial for you. Relative Strength.
Todays Technical Analysis Video
The technical analysis that Philip runs though in this video clearly shows that you could be making more money by trading the stock market, than if you were positioned in gold and silver. Philip takes it one step further by showing you how using the relative strength indicator against the stock markets means you can also position yourself in the best stock market, for example: the ES has shown relative weakness to the YM which means that if you had traded the YM then you could have already booked your profit and been sitting on the sidelines waiting for the next profitable opportunity.
This trading strategy is very powerful and can be implemented as part of your own trading strategy to help you identify which stocks are strong and which ones are under performing.
Technical Analysis Overview
ES
YM
Gold
Silver
We got a request by one of the members to run though the implementation of our analysis of the stock ticker FFIV, which is covered at the end of the video. If you have any questions relating to this Market Update or wish for us to talk about a trading subject that you're interested in, please don't hesitate to contact us.