What are the Components of a Stock Configuration?
A Stock Configuration consists of four Components, as follows: • Price of the Stock – as of the most recent Friday’s close; • 5 week Moving Average of the subject Stocks weekly closing price utilized to monitor short-term movement of the Stock; • 15 week Moving Average of the subject Stocks weekly closing price utilized to monitor intermediate-term movement of the Stock; • 40 week Moving Average of the subject Stocks weekly closing price utilized to monitor long-term movement of the Stock. The most important things to know about the four Components are: • rank – the value of each Component in relation to the value of the other three Components (i.e., which Component’s value is Highest, Center, or Lowest, etc…), and • direction – whether each Component moved UP or DOWN (increased or decreased in value) in relation to where it was the previous week. So, as an example looking at the hypothetical ABC Stock, if the . . . • ABC Close was at $24.00 the previous week and is at $27.00 for thi
