How to Calculate "Relative Strength" & "Volatility"?

Discussion in 'Technical Analysis' started by shrees, Dec 12, 2004.

  1. shrees

    shrees Member

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    Hi,

    Traderji and other members of the forum...request you to please explain, how to calculate RELATIVE STRENGTH (not RSI) and VOLATILITY. Is there any formula for this or any site which contains information on this?

    Thanks
    Shri.
     
  2. sh50

    sh50 Active Member

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    Relative strength comparative in metastock can be drawn from the above like all other indicators

    Alternatively, in data downloader do file new composite, write a name for composite say Ranbaxy-n(for nifty or sensex), click primary and put Ranbaxy, click secondary and put nifty, sensex or the industry indice
    In the operation put divide and then do ok.

    You can go back to see the chart in metastock.

    The problem here is that although on doing edit databy right clicking you can even get the open,high, low and close of the composite, the metastock exploer does not accept composite securities with the result it becomes impossible to get all the closes in one shot if you were using the daily closes explorer. In one shot one can know how well all the securities are performing vis-a-vis the index. Getting individual charts or figures maybe good but is cumbersome.

    Anyone on how to know the comparatives in one shot. This is very important as one has to know which stock is over or underperforming.

    As far as volatility is concerned, one can use the stdev function but the issue is what periods to put in. I think from a day trading perspective, 3,5,7 days would do just fine because beyond that it becomes both impractical and values also differ greatly.
     
    Last edited: Dec 12, 2004
  3. nayankapadia

    nayankapadia New Member

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    pl let me know any technical programmes that can guide for market strategy. and how to use them. if possible you can recommend any useful programme. i also want to study about technicals also. pl let me know how to get datailed informations of charts. thanking you

    nayankapadia
     
  4. shrees

    shrees Member

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    Please take a detailed look into all the posts under the heading "Software and Data". You will find lots of links to softwares as also data.

    Shri.
     
  5. sh50

    sh50 Active Member

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    I also looked up the Average True range for volatility. There is also an ATR() function in Metastock. The problem with ATR however is that it reflects different values for different price ranges and therfore cannot give a truie picture of volatility.

    The better thing to do according to a trader= (high-low)/closing price*100. That was interesting. I modified it a little. Instead of closing price take the typical price or (h+l+c)/3. Traderji, your expert comments please.
     
  6. ajuliandavid

    ajuliandavid New Member

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    Mr sh50

    Your Method of calculating Volatility Somewhat not clear to me
    I have calculated it in this way

    high : 1085
    low : 1058
    Close:1053
    Current Market Price : 1075

    First Calculation
    (h+l+c)/3
    (1085+1058+1053)/3=1065.33 Whether I should Go long and have stop loss @ 1065.33

    Second Calculation
    (1085+1058+1075)=1072.60 with current market Price Whether I should Go long and have stop loss @ 1072.60

    Which one is correct

    My problem is whenever i use stop loss the stop loss getting triggered and going against the stop loss price...

    Please help me how to have proper stop loss order
     

  7. NOMINDTR

    NOMINDTR Well-Known Member

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    Beta Value & "Volatility"?

    Sooner or later one must get it!
     
    Last edited: Dec 17, 2008
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