Small companies lead large companies up at the beginning of bull markets. Here, the relative strength (RS) between FXCM's US2000 and US30 CFDs is insightful.
The RS has moved from the weak channel (between the lower blue and red bands) into the neutral region between the blue bands (blue arrow). The RSI is on the cusp of turning bullish, I.e. moving above 50 (red arrow).
RS moving into the bullish channel, between the upper blue and red bands, and the RSI holding above 50, will be bullish.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.