Thread by @apurvansheth

I am building up on the concept of #RTM shared by @heartwon in this post -

#RTM = Short-Term Mvng Avg (5DEMA) / Longer-Term Mvng Avg (20 DEMA)

He adds another #RTM: 4 Week EMA / 12 Week EMA on the #charts to get a holistic view

So the two #RTM's work like a MACD except that an #MACD plots the absolute difference between 2 mvng avgs. But since we are dividing one avg with another in #RTM we can use it to compare one stock with another which we cant do in a MACD.

I have applied the concept of RTM on F&O stocks and come up with some insights. If the daily #RTM value is above the Weekly #RTM value then I define the trend as bullish. Then I calculate the difference between Daily and weekly #RTM's across F&O stocks.

Then i sort the list in descending order to see the top 10 stocks. You will notice that 8/10 stocks are from the financial space. Some of them haven't participated in the rally like other financial stocks.

Here are the bottom 10 stocks. Here again you can notice concentration of activity. #Pharma stocks dominate the list, 8/10 stocks are from the pharma pack.

If we were to go only with what #RTM says its time for role reversal. #Pharma which was leading the rally could trend further down. #Financials which were lagging could trend higher.

#My2bits