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<SPAN
class=921565916-30052003>Dan,
<SPAN
class=921565916-30052003>
Here
is a description from Technical analysis A-Z........ the raw number is of little
value it is the curve or the slope that tells you more of the
story....
<SPAN
class=921565916-30052003>
RELATIVE STRENGTH, COMPARATIVE
Overview
Comparative Relative Strength compares two securities to show
how the securities are performing relative to each other. Be careful not to
confuse Comparative Relative Strength with the Relative Strength Index.
Interpretation
Comparative Relative Strength compares a security's price
change with that of a "base" security. When the Comparative Relative Strength
indicator is moving up, it shows that the security is performing better than the
base security. When the indicator is moving sideways, it shows that both
securities are performing the same (i.e., rising and falling by the same
percentages). When the indicator is moving down, it shows that the security is
performing worse than the base security (i.e., not rising as fast or falling
faster).
Comparative Relative Strength is often used to compare a
security's performance with a market index. It is also useful in developing
spreads (i.e., buy the best performer and short the weaker issue).
Example
In the following charts, the top chart displays both Microsoft
and IBM's prices.
<IMG height=268
src="gif00327.gif" width=380>
The bottom chart shows the Comparative Relative Strength of
IBM compared to Microsoft.
The Comparative Relative Strength indicator shows that IBM's
price outperformed Microsoft's price during the last three months of 1993. It
also shows that IBM's price then underperformed Microsoft's price during the
first three months of 1994. (I drew the trendlines on the Comparative Relative
Strength indicator using the linear regression technique.)
Calculation
The Comparative Relative Strength indicator is calculated by
dividing one security's price by a second security's price (the "base"
security). The result of this division is the ratio, or relationship, between
the two securities.
Regards,
Jayson
<FONT face=Tahoma
size=2>-----Original Message-----From: dajester147
[mailto:dajester_147@xxxxxxxxxxx]Sent: Friday, May 30, 2003 11:44
AMTo: amibroker@xxxxxxxxxxxxxxxSubject: [amibroker]
Relative Strength vs IndicesHello, I tried to do a
stock comparison vs S&P500 with this linePlot(
RelStrength("^GSPC"),"Relative Strength", colorYellow,styleLine
);but when I plot it, it always shows the line positive (as in the
#'s on grid is >0) no matter what stock I go to. Looking a Bigcharts,
stockcharts, etc on RS, they show that a stock either is performing
above or below average.Thanks,DanSend
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