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Is there any way to calculate or approximate a stock's Relative
Strength as defined by Investor's Business Daily (i.e., the relative
price performance of a stock in comparison to all other stocks)?
I tried using RelStrength specifying the Wilshire 5000 Index (the
broadest market measure I am aware of), but when I sorted the
results by the RelStrength, it was apparent that the order was
directly proportional to the Close price. Then I thought I could
normalize it by dividing by the Close price, but the results of doing
this were 0.09, 0.10, or 0.11 for all 8,876 stocks -- not a useful
measure.
Am I missing something here?
Thanks,
Damien
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