Outperforming the Markets Using Relative Strength and Breadth Analysis: With Live Market Data, Examples and Unique Techniques Paperback – September 10, 2021

On Amazon, I’ve positively reviewed the author’s previous two books -- Trading the Markets the Point & Figure Way, and Profitable Trading with Renko Charts – which I highly recommend. They were masterfully written with a clear explanation of the material covered with numerous examples. I was particularly interested in Shah’s take on relative strength, as I wrote my master’s thesis back in 1970 on the relative strength concept, and have always found it to be an excellent method of market analysis and stock selection.Similar to these two books, the latest one is a 332-page 8.5” by 11” softcover that is easy to read. Moreover, color is liberally used in the multitude of charts and tables making it reader-friendly. Shah meticulously explains the concept of relative strength, clearly pointing out that it is not the same as the popular Relative Strength Index (RSI) indicator used in numerous technical analysis software packages. Shah lives in India, so all the examples are from the Indian stock market and in particular the Nifty 200 and 50 Indexes (not related to the Nifty Fifty high flying stocks that were popular in the U.S. in the 1970s). Nonetheless, relative strength analysis is applicable to any stocks listed on any exchange in the world.Relative strength analysis is a profitable way to invest or trade the markets since its purpose is to pick the cream of the crop – that is selecting the best performing issues (based on price appreciation over a pre-selected time period (such as 1-month) from a particular universe such as the Nasdaq 100, SPDR sectors or industries in the U.S., for example. The premise is that leading stocks tend to continue to be leaders until they give way to other leaders over time. Since there are always leading stocks and groups in any bull or bear market, using relative strength is one way to stay with the best of the best.This book provides an in-depth review of the value of relative strength analysis from a number of different angles. Each chapter builds on the next and the reader is encouraged to read the book from beginning to end without jumping around. I agree 100%, as it is written in a way that builds knowledge a chapter at a time.The author focuses first on determining the trend of the market or segment to find the top performers in the top performing segments. He focuses on ratio charts which plot one stock vs. another or one stock vs. its group or logical benchmark. A rising trend line from left to right on a chart indicates a potential buy candidate. That means that the numerator (stock A is going up faster than the denominator (stock B).Shah spends a great deal of time working through different combinations of numerators and denominators rising and falling and labelling these with different names such as Bullish Flying Pattern, Bearish Drowning Pattern, and Lion Pattern. He urges traders to make sure the pattern observed reaches confirmation such as a reversal before putting money at risk. Traders should be aware that any top performing relative strength stock can suddenly reverse and plummet in price. And of course, he recommends stop loss orders to limit losses. He also recommends using multi-time frame relative strength analysis. He provides hundreds of charts and tables to clearly explain his salient points. He also weaves in candlesticks, as well as point and figure charts as a way to enhance the relative strength approach.Also presented are interesting analysis techniques including pair trading, Turtle breakout, fusion matrix, Bollinger bands and Donchian Channels, and breadth indicators. The book contains a useful 27 book bibliography.In summary this book provides an excellent grounding in the importance and value of relative strength analysis using ratio charts and breadth and ways to accomplish profitable returns for short- and long-term time horizons. Of course, the reader should further expand his knowledge after reading this primer by delving into Tom Dorsey’s book on Point & Figure Charting and use websites that provide relative strength performance information of which there are many, especially in the U.S. The author provides many useful ideas, so have a pen handy to do a lot of underlying or a pad to take copious notes.

I've studied this book and the author's Renko chart book and on the basis of both, I conclude he writes professional-looking texts with mundane insights and seemingly promising approaches which aren't of any value in real-time. The Renko book concerns some novel metrics the author developed, but he conveniently deprives the reader of the means to reproduce those on his own. Despite the elaborate wind up, the reader is left with no new tradable ideas validated through anything close to a backtest. This book, which is almost exclusively focused on relative strength despite "market breadth" being in the title, fails even to clearly explain the context by which to measure the former, and the vague description the author manages to include is directed only to the Indian stock market. He offers absolutely zero new reproducible trading techniques and/or insights which demonstrate alpha. It's amazing to me that someone can go to such lengths to write and produce seemingly carefully crafted, professional-appearing texts purporting to show "outperformance" while ultimately revealing no discernible edge whatsoever, but that is my conclusion. I challenge anyone to refute my seemingly harsh assessment.

I have learnt a lot of from reading this book and also recommend this to anyone who want to build their knowledge about relative strength.It is the best book ever i read about relative strength.What I learnt .Here are the key points.1-Adaptive moving average and ratio charts.2-How to use moving average to find the trend whether it is a uptrend or downtrend for any asset class,sector and stock etc.3-Many other indicators to find the trend and relative strength and market sentiments.4-Normalize a chart to find out the outperformer in a group of stock ,sectors and asset class.5-Most important thing I learnt is to use point and figures chart to avoid noise of the market.6-Turtle strategy using p & F charts and candle stick pattern as well.in P & F chart we can take a trade using a break out of 5 X and in the candle stick pattern we can set a trade using 2o days high .7-Top down approach to find the trending /outperformer asset class then sector and then stocks from that sector.After tha we can go to charts and take a trade with the price action.

Molto interessante ma poi a mio modesto parere diventa inutilmente cavilloso e denso di possibilitàper crearsi una strategia come part time.

Small chapter wise should be covered.

This book is by far the most insightful book that I have read in the past 2 years. All the other books that I read earlier either focussed entirely on the strategy that worked for the author or a method that one could try and work on without addressing the most important challenge that every trader or investor faces - "stock selection".This book is purely written with the intent to help all the market participants to deal with the biggest issue of stock selection. Once you are able to select stocks in a logical manner you can use a system that you are most comfortable with to trade those stocks.

picture of graph is so poor that it can not be seen clearly so you will going to have lot of problem in understanding the context. I am not satisfied for this book in kindle