Re: [amibroker] rs indicator

["Tomasz Janeczko" <amibroker@xxxx>]

David,
 
The absolute value of RS means nothing 
because
RS is simply a ratio of two prices
currently_sel_ticker/index
 
(in AmiBroker it gets multipled by 
1000)
 
so the absolute value depends on price of your 
security.
 
What *IS* important is the RATE OF CHANGE of 
RS.
If Rate Of Change of relative strength is positive 
- it means
that given security outperforms the 
index.
 
So, it is actually better to plot ROC of 
RS

Graph0 = ROC<FONT color=#000000 
size=1>( RelStrength<FONT color=#000000 
size=1>( "^DJI"<FONT color=#000000 
size=1> ), 10<FONT color=#000000 
size=1> );
(replace ^DJI by XAO or other index 
name);
 
- this will give you the percentage of howmuch 
your security outperformed the index
in the recent 10 bars.
 
Best regards,
Tomasz Janeczko
amibroker.com
 
<BLOCKQUOTE 
>
----- Original Message ----- 
<DIV 
>From: 
David 
Holzgrefe 
To: <A 
href="" 
title=amibroker@xxxxxxxxxxxxxxx>amibroker@xxxxxxxxxxxxxxx 
Sent: Monday, November 19, 2001 2:10 
PM
Subject: [amibroker] rs indicator

hi TJ and others 
 
could you please explain how the scale works on 
the rs comparison
 
in the attachment there is the asx all ordinary's 
index and a stock the has performed well,  when I look at the RS 
indicator I find it hard to get a understanding of what the graph is saying 

 
The stock has out performed the asx but by how 
much ?  rs value 0.668 ?
 
Thanks David  Your 
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