At Allstarcharts we incorporate what we call a, "Top/Down Approach". To us, this means we start with the broader picture and analyze all of the Indexes around the world. Only then do we dive into our own country or the country in question. This is where we try and identify the trends in the S&P500, Dow Jones Industrial Average and many others. Next we break it down to the sector and industry level like Healthcare, Banks or Technology. Finally when the relative strength and momentum line up in a particular group of stocks, that's when we try and find the best risk vs reward opportunities available to express a given theme.
