No. of Recommendations: 16
The most effective look back period for relative strength is proportional to the forward holding period.
If you are holding for one year, use RS52 or RS26. If you are holding for 3 months, use RS13.
This applies to very short periods also. If holding for one minute, use the momentum over the last minute.
I don’t have figures in front of me but this follows my research on the subject 25 years back.
If holding for x days into the future, use the relative strength close x days (say 0.5x to 2x days) in the past.
- Manlobbi
