I mainly trade stocks and from time to time see a relative strength (RS) anomaly. My question comes at this time as this anomaly has become a little more prominent than previous times. However, it is still rare considering the overall trading spectrum. Among other tools, I use RS at times when it fits context. The anomaly that I am seeing at times now is that a stock will show great RS against the indexes and/or the ETF. For example, as the index/ETF have 3 bars down, the stock will hold for 3 bars in a tight range and every push down gets bought in a healthy fashion. Now as the index/ETF eases off and retraces (or even assumes/resumes trend) and comes up 3 bars, the stock fails to connect with this move and stays put, which now equates to it showing relative weakness. What is happening here??? *Additional info: - trade 5 min charts - trade for protracted moves - anomaly unlikely to have HFT influence (but opinions in this regards are welcomed) - no buyer/seller in range holding firmly at specific price
Some folks did some buying and some did some selling; meanwhile Jack inter-mediated & Jill tried to inter-mediate but got Jack'd proper. All in a day's banality, really. I don't suppose that helps you any