What is a Power Rating and what does it measure?

The Power Rating reflects the present relative strength of each issue. The Power Rating Index is comprised of three separate components drawn from the daily trading action of each stock.

• Pulsation: This measurement is computed from the number of times a stock registers gains or losses within a fixed period of time.
• Trend: Comparing a stock's individual action with the action of the market as a whole denotes whether that stock is acting stronger or weaker than the majority of stocks traded.
• Percentage: The price movement of each stock, up or down, is calculated on a percentage basis in order to reduce all stocks to a comparative level.

These three components are combined into one index, which becomes the Power Rating for an individual stock. Regardless of the price or the volume of trading, the PR reduces the action of each stock to a relative and comparative basis.