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Re: [amibroker] Relative Strength



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You're right about making the number of days/quarter more accurate. I just 
checked Daily Graphs Online and they say
 
Relative Price Strength (RS) Rating or Relative 
Strength  Exclusive rating in Investor's Business Daily. This 
IBD SmartSelect® Corporate Rating measures each stock's price performance 
over the latest twelve months compared to all other stocks. 
 
so I don't know if they ignore stocks under $5 or not. Anyway, for going 
long, try using a buy-condition and optimizing the quarterly growth number > 
opt for opt = Optimize("opt", 1, 1, 2, .1). Also, try a buy-condition with 
quarterly growth in a range, like 1.0-1.1, 1.1-1.2. I believe I use a filter of 
quarterly growth > 1.15 or so, and am wary when it gets too big, like 
>1.5.
 
Quotes Plus has RS-rank that we can use, but it only goes back to 1995. I 
didn't think that was enough when I started backtesting a couple of years ago. 
Now, it includes a bull and bear market, so maybe it's enough.
 
Mike
----- Original Message ----- 
From: <A 
href="" title=avcinci@xxxx>Avcinci
To: <A href="" 
title=amibroker@xxxxxxxxxxxxxxx>amibroker@xxxxxxxxxxxxxxx 
Sent: Friday, July 05, 2002 5:46 AM
Subject: Re: [amibroker] Relative Strength

Mike,
 
A nitpicking question. Wouldn't it be more accurate to assume 22 rather 
than 20 trading days per month in your formulas (or better, 64 trading daysper 
quarter)? Also, doesn't IBD ignore all stocks whose prices are less than 
$5/share? Thanks.
 
Al V.
<BLOCKQUOTE 
>
----- Original Message ----- 
<DIV 
>From: 
Mike 
Lucero 
To: <A 
href="" 
title=amibroker@xxxxxxxxxxxxxxx>amibroker@xxxxxxxxxxxxxxx 
Sent: Thursday, July 04, 2002 11:44 
PM
Subject: Re: [amibroker] Relative 
Strength
There are two kinds of relative strength. The relative 
strength graph thatis shown on IBD graphs is built into Amibroker as 
RelStrength(). The RSranking number is made by calculating an averageof 
quarterly growth ofprice, then sorting by that number. The top 10% would 
be RS rank 90+.Mikeqtrgrowth = (2*C/Ref(C,-60) + 
Ref(C,-60)/Ref(C,-120) +Ref(C,-120)/Ref(C,-180) + 
Ref(C,-180)/Ref(C,-240))/5;Plot(qtrgrowth,"qtrgrowth",1,1);----- 
Original Message -----From: "Damien" <damienb4l@xxxx>To: 
<amibroker@xxxxxxxxxxxxxxx>Sent: Thursday, July 04, 2002 2:47 
PMSubject: [amibroker] Relative StrengthIs there any way to 
calculate or approximate a stock's RelativeStrength as defined by 
Investor's Business Daily (i.e., the relativeprice performance of a stock 
in comparison to all other stocks)?I tried using RelStrength 
specifying the Wilshire 5000 Index (thebroadest market measure I am aware 
of), but when I sorted theresults by the RelStrength, it was apparentthat 
the order wasdirectly proportional to the Close price. Then I thoughtI 
couldnormalize it by dividing by the Close price, but the results of 
doingthis were 0.09, 0.10, or 0.11 for all 8,876 stocks -- not a 
usefulmeasure.Am I missing something 
here?Thanks,DamienYour use of Yahoo! 
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