Want to pick up good stocks?Try this way

#1
Hi
are you struggling to find good stocks?
Use Amibroker to help you to find RS

CAN somebody post RS afl for 6 month basis,please!
Here is a starting effort.please correct if any error
PS The perfect rs formula is available from IBD- yet to find it.
If anyone has it please post it & oblige!

Two hints
1.Enter a fresh rally in RS
2.LOOK AT SLOPE OF THE RS itself-if slope is upwards and more than 30 degrees-good
Remember--Depending on your nifty symbol,change the symbol in the code if needed.

============================================
HTML:
_SECTION_BEGIN("Relative Strength");//eod chart to be used

base = ParamStr("RS base ticker=S&P CNX NIFTY", GetBaseIndex() );
Plot( RelStrength("S&P CNX NIFTY"), _SECTION_NAME() + "(" + base + ")", ParamColor( "color", colorCycle ), ParamStyle("Style")  );
//RS 180 DAY BASED


_SECTION_END();
EMARSN = EMA(RelStrength("S&P CNX NIFTY"),1);

EMARS180 = EMA(RelStrength("S&P CNX NIFTY"),180);

EMARS180COLOR = IIf(EMARSN>EMARS180,colorGreen,IIf(EMARSN<EMARS180,colorCustom12,colorGrey50));
PlotOHLC(EMARSN,EMARSN,EMARS180,EMARS180,"EMARS CLOUD",EMARS180COLOR,styleCloud);
=====================================


see TCS EOD CHART with 6month basis.

concept
==============================================

1)RS6MONTH BASED
2)CFPS- get from icicidirect or capitalmarkets

Make watchlist first.
From there, run every stock through a test of "relative strength."

Relative strength (RS) simply compares the past six-month's performance of a stock to the entire market.
If a stock is rising faster than 70% of the market, then it passes this part test.

Why focus on this? If you want to make money the fastest way possible, you want to buy stocks that are already on their way up. It's like the difference between waiting at a bus stop or hopping on a moving train.

If a stock passes this test, then look at the strength of its cash flow per share.

Cash flow measures the amount of money coming into a business.
It's the lifeblood of any company.
This is the money a business uses to buy new factories, pours into research and development, or delivers back to its investors via dividends and share buybacks.

I focus on a stock only if it is seeing cash flow per share rising faster than 70% of all available stocks.

Even after accounting for relative strength and cash flow growth, my system will only rank a maximum of 10 stocks as "buys." Only 10 stocks from the dozens that our staff of experts recommend -- and the thousands traded on the market. That's the cream of the crop.
-----------------------------------------
latest research from Michael J. Carr.


Here is RS based on 6 month period


HTML:
 Relative Strength, 6 Months

What does RS 6m mean?

6 month relative Strength measures a stock's price change over the last 6 months relative to the price change of a market index (e.g the FTSE All Share). It shows the relative outperformance or underperformance of the stock in that timeframe.

This figure is sourced from Thomson Reuters. 

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%



Stockopedia explains RS 6m...

Research indicates that relative strength is a negative signal in the near-term but generally a positive indicator in the medium (6-24 months).
Here is the formula I use for the Relative Strength Rank (set it at Market Rank).
It produces a RS Rank that nearly matches IBD's for every stock.

((((C - C63) / C63) * .4) + (((C - C126) / C126) * .2) + (((C - C189) / C189) * .2) + (((C - C252) / C252) * .2)) * 100
 
Last edited:

sumantra

Active Member
#2
Hi
are you struggling to find good stocks?
Use Amibroker to help you to find RS

CAN somebody post RS afl for 6 month basis,please!
Here is a starting effort.please correct if any error
PS The perfect rs formula is available from IBD- yet to find it.
If anyone has it please post it & oblige!

Two hints
1.Enter a fresh rally in RS
2.LOOK AT SLOPE OF THE RS itself-if slope is upwards and more than 30 degrees-good
Remember--Depending on your nifty symbol,change the symbol in the code if needed.

============================================
HTML:
_SECTION_BEGIN("Relative Strength");//eod chart to be used

base = ParamStr("RS base ticker=S&P CNX NIFTY", GetBaseIndex() );
Plot( RelStrength("S&P CNX NIFTY"), _SECTION_NAME() + "(" + base + ")", ParamColor( "color", colorCycle ), ParamStyle("Style")  );
//RS 180 DAY BASED


_SECTION_END();
EMARSN = EMA(RelStrength("S&P CNX NIFTY"),1);

EMARS180 = EMA(RelStrength("S&P CNX NIFTY"),180);

EMARS180COLOR = IIf(EMARSN>EMARS180,colorGreen,IIf(EMARSN<EMARS180,colorCustom12,colorGrey50));
PlotOHLC(EMARSN,EMARSN,EMARS180,EMARS180,"EMARS CLOUD",EMARS180COLOR,styleCloud);
=====================================


see TCS EOD CHART with 6month basis.

concept
==============================================

1)RS6MONTH BASED
2)CFPS- get from icicidirect or capitalmarkets

Make watchlist first.
From there, run every stock through a test of "relative strength."

Relative strength (RS) simply compares the past six-month's performance of a stock to the entire market.
If a stock is rising faster than 70% of the market, then it passes this part test.

Why focus on this? If you want to make money the fastest way possible, you want to buy stocks that are already on their way up. It's like the difference between waiting at a bus stop or hopping on a moving train.

If a stock passes this test, then look at the strength of its cash flow per share.

Cash flow measures the amount of money coming into a business.
It's the lifeblood of any company.
This is the money a business uses to buy new factories, pours into research and development, or delivers back to its investors via dividends and share buybacks.

I focus on a stock only if it is seeing cash flow per share rising faster than 70% of all available stocks.

Even after accounting for relative strength and cash flow growth, my system will only rank a maximum of 10 stocks as "buys." Only 10 stocks from the dozens that our staff of experts recommend -- and the thousands traded on the market. That's the cream of the crop.
-----------------------------------------
latest research from Michael J. Carr.


Here is RS based on 6 month period


HTML:
 Relative Strength, 6 Months

What does RS 6m mean?

6 month relative Strength measures a stock's price change over the last 6 months relative to the price change of a market index (e.g the FTSE All Share). It shows the relative outperformance or underperformance of the stock in that timeframe.

This figure is sourced from Thomson Reuters. 

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%



Stockopedia explains RS 6m...

Research indicates that relative strength is a negative signal in the near-term but generally a positive indicator in the medium (6-24 months).
Here is the formula I use for the Relative Strength Rank (set it at Market Rank).
It produces a RS Rank that nearly matches IBD's for every stock.

((((C - C63) / C63) * .4) + (((C - C126) / C126) * .2) + (((C - C189) / C189) * .2) + (((C - C252) / C252) * .2)) * 100
is there no need to take into account the fundamental analysis ?
 

Similar threads

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?