What Is CARS and how is it different?
Caruso Adaptive Relative Strength (CARS) is a leap forward in relative strength analysis. The CARS tool allows for quick and simple identification of whether a security demonstrates relative strength and, as a result, is under institutional accumulation. CARS can be used to find RS on any traded security and is not limited to stocks. By design, CARS adapts to a security’s volatility to just as easily find RS in a slower-moving dividend-paying stock as a high-flying momentum name. This capability allows investors to apply RS analysis to whichever type of security meets their goals and risk preferences.
All things Relative Strength
Institutional investors are the driving force behind stock advances and declines. Yes, they have research that is the envy of the investing world, but they also have a significant problem – their immense size. Relative Strength analysis is the single best tool to discover whether or not investors with the deepest pockets are accumulating or distributing a stock. I believe it is vital to have a strong understanding of any tool that you use in your investing process. For a deep dive into all things Relative Strength and an introduction to the new ground breaking CARS indicator, please watch this video.
CARS - RS application
Yes, relative strength is a highly effective tool to use as part of your analysis. However, as critical as it is to understand your investment tools, it is equally important to incorporate them effectively into your investment strategy. To help you understand how I integrate CARS into my process, please watch this video on CARS applications.