The RS line (relative strength) is included in the Trend Follower indicator, it measures a stock’s performance versus a market index. A rising RS line indicates a stock is outperforming the overall market.
Mike Webster, previously a Portfolio Manager at O’Neil Capital Management, worked directly alongside William O’Neil for many years. Mike has developed a unique process using the RS Line along with two moving averages as a way to hold winning positions for bigger moves. Mike refers to his concept as Webby’s QQGD (Quick, Quicksand & Grateful Dead). In this video I’ll walk through the details on how to use Mike’s concepts on both weekly and daily timeframes in the LevelUp TradingView indicator. I’ll also highlight an additional feature I’ve added to perform historical analysis which can be helpful for the following:
- Understanding the personality of a stock and how it trades.
- Reviewing true market leaders and their price action relative to the RS Line.
- Doing post-mortem analysis of past trades.