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You are right .. there are two different things:
- Relative Strength is a measure of how a stock is performing in the
market. Typically within it's own industry. (Read William O'Neil's
books and follow Investors Business Daily). It is refered to as RSI.
- Weilder's RSI is a measure of the days in a row that a stock has
been going up. So it acts as an oversold and overbought
indicator since nothing goes up or down forever.
So you have to live with the ambiguity of overlapping acronyms. From
what I have seen so far, RSI refers to relative strength unless being
refered to Weilder's RSI. Of course there are exceptions but that's my
personal take.
Hope that helps,
Sam Gray
--- In amibroker@xxxx, "mroman59" <mroman59@xxxx> wrote:
> According to AB help file, RS by definition is: Calculates relative
> strength of currently selected security compared to "tickername"
> security, using SYNTAX relstrength( "tickername", fixup = 1)
>
> AND
>
> RSI is a technical indicator developed by Welles Wilder to help
> investors gauge the current strength of a stock's price relative to
> its past performance. It compares a stock's highest highs and lowest
> lows over a period of time. RSI is based upon the difference between
> the average of the closing price on up days vs. the average closing
> price on the down days.
>
> Problem:
>
> Many investors use a screening method called relative strength to
> filter out stocks that have a value between 0 and 100 which is not
> considered RSI in my opinion. This filtering is the strength of a
> stock price movement over a set period of time which is relative to
> the price movement to all other stocks in the database. The
> comparison to an index is not the objective, only how well the price
> is moving compared to the price movement of other stocks.
>
> For exmaple: "Filter stocks whose RS is above 85" means screen for
> those stocks whose price movement is in the top 15% of all stocks in
> the database. Again, this is not RSI, because RSI compares a stock
> price to its own past performance and not to that of all stocks.
The
> code somehow ranks stocks by percentile (0 to 100) and you
> automatically know which stocks prices are in the top 10% or 15%,
> etc., which ever filter you wish to screen for. The code must
include
> the ability to take into account the price within a given period of
> days, for example 1 month, 3 months or 1 year, etc.
>
> At this time I can not find any instructions in AB that would help
me
> code and screen for stocks with price movement (or RS) that returns
> all stocks with a selected value (between 0 and 100) which is
> actually a comparison to all other stocks in the database. I have
> used other software applications that performed this function, but
> the code was not available to the user.
>
> Your help is appreciated.
> Thank You
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