Relative Strength comparision

Discussion in 'Technical Analysis' started by sachin divase, Mar 13, 2005.

  1. sachin divase

    sachin divase Member

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    How to use RSC in metastock?
    I want to explore with the help of RSC to know that which sector is strongest and which script out of that sector is strongest.
    Can anybody help me?
     
  2. Traderji

    Traderji Super Moderator

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    Check out the External Relative Strength - SpyGlass Market Toolbox (v2.5) add on for MetaStock at http://www.tsagroup.com/spy/ersa.php?
     
  3. sudoku1

    sudoku1 Well-Known Member

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  4. kevin_shah

    kevin_shah Active Member

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    Hi all,
    I have the same criteria as required by sachin divase, I use amibroker and they have relative strength comparative which is nothing but only assigning value of a stock price w.r.t to Index price which is the foolish way to do:---
    For Example Index ----6000 rs it is assigned 1000
    Titan ---4000rs it is assigned 800
    MRF ---7000 it is assigned as 1200
    TTML - 20 rs is assigned 25
    and so on
    So it only scans stocks which are very close to Index Price which i feel is useless
    So, Friends I need actual relative strength where its assigned rankings based the strongest and weakest stocks in select group of watchlist, also it should be from 0 to 100
    So above 80 are strongest and below 20 are weakest........
    After searching google i came to know there are many methods to derive that
    If any body has that AFL for determining RS then please provide me

    Thanks in advance

    KEVIN
     
  5. murthyavr

    murthyavr Well-Known Member

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    If you are using version 5.30 of AmiBroker, you will notice that they have introduced one new indicator - Relative Performance (available under Basic Charts).

    It looks to be different from the earlier Comparative Relative Strength. I wanted to understand the underlying code for the new indicator, but I couldn't make out anything. When plotted on a chart, the values keep changing as you scroll left or right!

    Any observations on this?
     
  6. kevin_shah

    kevin_shah Active Member

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    Thanks Murthy sir
    I was not knowing about this as I was not aware of the this system in Amibroker, Thanks once again for that
    Shedding some light In this area u can see where is the stock performance is moving in relation to Nifty Index or the Sector Index.....So, U have to put ur Nifty and Stock and Sector for Example Nifty, ICICI, Bank Nifty in the parameter window and anlyse how it has moved
    For example on Daily setting I come to know that Nifty has moved from 0 to 180 but the stock has moved just 0 to 150 but in Sector it have moved from 0 to 190 that shows how the stock is performing in the sector w.r.t Broader Market

    This is one style of knowing Relative Strength, but i wanted some ranking based RS which is universal and related to all 500 stocks that i chose,( In USA they provide in Investors Business Daily)
    During Bull Phase I will consider stocks which are above 80 in rankings
    During Bear Phase I will Conseider stocks which are below 20 in ranking

    Thanks
    Kevin
     

  7. Trady

    Trady Active Member

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    It is possible to find out the Ranks of Different stocks from o-100 using AFL

    I just came to know about this topic too and impressed with the rankings.
     
  8. Trady

    Trady Active Member

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    This is the way i Rank the Nifty Stocks
     
    Last edited: May 2, 2011
  9. kevin_shah

    kevin_shah Active Member

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    Yes Trady
    One can do it if they have the formula and as per my understanding these rankings are only from 0-100 to reduce any confusion as u will know which stocks to take when in bull market or bear market eith intra, swing or position.......Investor Business Daily's website gives them the rank according tto the performance of the stock vis-a- vis other stocks to find out high relative strength.this is th website

    http://www.investors.com/Education/...ating+or+Relative+Strength&mode=searchResults

    Kevin

    P.S If any one has the formula and the ranking please provide
     
  10. Taurus1

    Taurus1 Well-Known Member

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    There is no standard formula as such, it all depends on what time frame you are comparing. A 200 day RS is different from a 10 day RS and so on. IBD uses proprietary methods to calculate their RS as I remember from some time ago. IBD is also widely followed so their RS rankings are publicly supported with buying at every dip creating a self fullfilling RS.
    A strong stock on one time frame may well be a weak stock on another timeframe.
    Nothing is strong or weak forever, when a strong stock breaks, that is what breaking is. :p
    Ultimately the overall market is king, when it goes up or down, it moves everything with it.
     
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