Technical

Each of our studies is designed to be as mutually exclusive of the others as possible. The Technical study evaluates stocks on the basis of price and volume only.

The primary driving force behind the MPT Technical study for individual issues is RELATIVE price performance. The key assumption is that one should buy companies that are doing well on a relative price basis and avoid those which are not. In our Model, relative strength is divided into long, intermediate, and short term inputs. Long term relative strength receives a higher weighting than the short term results. To the short term component we add RELATIVE volume weighting. The ideal candidate for purchase has strong long and intermediate relative price strength and a short term period of relative price under performance on lower than normal relative volume.