RE: [amibroker] Relative Strength function

["Jayson" <jcasavant@xxxxxxxxxxx>]

<SPAN 
class=382403213-14062003>Tony,
from 
TA A-z.......
<SPAN 
class=382403213-14062003> 

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="gif00341.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: Tony/Dianne 
[mailto:awenos@xxxxxxxxx]Sent: Saturday, June 14, 2003 8:23 
AMTo: Amibroker GroupSubject: [amibroker] Relative 
Strength function
Hi All,
 
Can someone give me the formula used for computing the above 
function?
 
Regards,
 
TonySend 
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