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Tom,
If comparing individual stocks to different relative strength base
symbols/indexes the individual values of the relative strength ratios
will be essentially meaningless. There are a number of ways to "rank"
by relative strength if each symbol is compared to the same base. One
of the simplest ways might be to calculate the rate of change of the
relative strength ratio plot over a specified period. Ranking of
these ROC values will give a more meaningful comparison of strength.
I'm pretty sure that the calculation for RelStrength is in the
amibroker documentation somewhere. If not, it is definitely to be
found by searching the group messages. There are (or used to be) also
some RelStrength ranking "systems" posted in this group's files
section or in the AFL library at amibroker.com.
Tim
--- In amibroker@xxxxxxxxxxxxxxx, "trb0428" <tombrowne34@xxx> wrote:
>
> Does anyone know the significance of the value returned by
> relstrength("tickername") ? I want to use the value that is
returned as
> my positionscore for deciding which trades to take when I have
> multiple buy signals but I can't find a definition of the value
that is
> returned so I can compare values on a normalized basis. For
example, my
> first buy candidate may be a technology stock that I am comparing
to
> the Nasdaq and receive a relstrength("Nasdaq") value of x, and my
> second buy candidate may be a industrial stock that I am comparing
to
> the Dow and I receive a relstrength("Dow") value of y. How do I
compare
> x and Y ? If I were comparing both symbols to the same index, I
suppose
> I could just choose the higher number, but since I am comparing
stocks
> from different sectors/industries to different benchmarks I am
needing
> a way to compare the values returned by Relstrength. Does anyone
know
> how this is being calculated...I have searched the documentation
but
> can't find anything.
>
> TIA,
> Tom
>
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