Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Finding the Leaders with ATR Momentum

by May 19, 2023
May 19, 2023
Finding the Leaders with ATR Momentum

Chartists can find leaders by ranking ETF performance in ATR multiples, and there is even an indicator for that. Normalized-ROC puts point performance in ATR multiples and we can compare these values against others. Current Normalized-ROC leaders include the Home Construction ETF (13.37), the Technology SPDR (6.40) and the Aerospace & Defense ETF (5.21). Note that TrendInvestorPro (here) recently introduced a quantified strategy that ranks and trades ETFs using Normalized-ROC.  

Normalized-ROC (200,20) is the 200-day point change (Dollar change) divided by ATR(20). The 200-day point change is simply the close less the close 200 days ago. We cannot use this point value to compare performance because high-priced ETFs will have higher values than low-priced ETFs. We can make this value comparable by dividing by 20-day ATR, which normalizes the 200-day point change. Normalized-ROC shows the price change in ATR multiples. The higher, the stronger.

The chart below shows the Home Construction ETF (ITB) with Normalized-ROC (200,20) in the first indicator window and ATR(20) in the lower window. ITB is up $18.49 (points) over the last 200 days and ATR(20) is 1.383. This means Normalized-ROC is 13.37 and ITB is up 13.37 ATR(20) values the last 200 days (18.49/1.383 = 13.37).

The next chart shows the S&P 500 SPDR (SPY) with the same indicators. SPY is up $11.17 over the last 200 days and ATR(20) is 4.686. Normalized-ROC is 2.38 (11.17/4.686 = 2.38) and this means SPY is up 2.38 ATR(20) values. ITB, in contrast, is up 13.37 ATR(20) values and clearly outperforming SPY. Here are some other leaders: ITB, XHB, GDX, XLK, SPHQ, RCD, PPA, IGA, IVE and QQQ.

Momentum strategies depend on an indicator to rank performance and find the leaders. There are 100s of such indicators, but it is hard to find one that delivers returns that justify the risk. Normalized-ROC is showing promise and details are available at TrendInvestorPro (here).

Normalized-ROC, the Trend Composite, ATR Trailing Stop and nine other indicators are part of the TrendInvestorPro Indicator Edge Plugin for StockCharts ACP. Click here to take your analysis process to the next level.

—————————————————

0
FacebookTwitterGoogle +Pinterest
previous post
Canary Wharf joins forces with the Felix Project to tackle food poverty
next post
DeSantis says he is one of only three ‘credible’ 2024 options, chances for Trump ‘not great’: report

You may also like

The Zweig Breadth Thrust Triggers, but the Indicator...

November 11, 2023

Week Ahead: NIFTY In Uncharted Territory; Adopt This...

January 13, 2024

Investors Hesitant Ahead of Fed Meeting: How to...

September 17, 2024

Stock Market Shows Its Magic: An Exciting Finish

May 31, 2024

Trend-Followers Get the Whip, while Swing Traders Catch...

November 18, 2022

California is Going to Drop a Liquidity Bomb...

July 21, 2023

Think Really Hard About Who You Want On...

December 16, 2023

Week Ahead: NIFTY Steps Into Next Week With...

January 11, 2025

Step 1: Asset Creation, Step 2: —————?, Step...

December 6, 2024

EQUITIES STRUGGLE AS MORE SECTORS TRY TO KEEP...

July 29, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved