IBD Mike Webster's RS Trend Lines

Investing Strategies Technical Trader's Sanctuary
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11/22/24: In this Friday IBD video, Mike was talking about how to deal with NVDA now that earnings are over and it is not doing anything. He reminded us that he really likes using trendlines for the RS on MarketSurge. (If you have another charting tool you would have to know how they calculate RS to make it the same).

Here are the settings he uses.

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Here are the notes I had on it…
The Standard (Jaggy) RS becomes Green (Daily = 1?)
Default RS Tab (Orange Lines)
• Daily: 21
• Weekly: 8
• Monthly: 10
RS2 Setting: (Green)
• Daily: 50
• Weekly: 21
• Monthly: 24
All are SMA, not EMA

The Orange SMA moves faster than the Blue SMA

He uses the weekly chart for core holdings and the daily chart for swing trading.
Here is the original “introduction” video on YouTube
Mike Webster: New Webby RSI, RS Line 21-Day MA Crossover & More | IBD Live | Alissa Coram - YouTube
At minute 6:20.

Here is the current NVDA weekly chart as an example.

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Watch this Friday’s video at minute 10:55 in this video to get exactly what he said about NVDA, but it does not have a YouTube link yet. (Will update tomorrow)

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Hi Pete, I don’t like using the Trendlines for the RS. I tried them a few months ago but to me it just seemed to busy.

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Andy, I will admit I don’t look at them much, but they don’t bother me either. I kind of like the idea of looking at the weekly for core position decisions since he so strongly swears by it. I want to try and watch that for my NVDA core in my IBD account.

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