Re: Relative Strength Comparison

[MFauber@xxxxxxx]

Dan:
Here's something that I had copied a few months back..........hope that it
helps:


Here is a document describing the way to perform a Comparative Relative
Strength in MetaStock for Windows:

Comparative Relative Strength charts can be useful in deciding which security
to buy, by helping to pinpoint the best performer.  They can also be useful
in developing spreads, i.e., purchase of the best performer "long", and
selling the weaker issues "short." Comparative Relative Strength can be
applied in MetaStock for Windows as follows:

Creation of a Template for Comparative Relative Strength

(For this illustration, we assume an equity/stock is compared to the S&P 500,
both of which must first have been collected from your vendor.  Both data
files should be in the same periodicity.)

1.  Load the S&P 500.  
2.  Load the equity, or whatever you wish to find the relative strength for.
3.  Drag the S&P 500 plot into a new inner window of the equity.  (You may
need to click Stack first.)
4.  Close the S&P 500 chart.
5.  Create a custom indicator:     Div(close, p)    
6.  Drag the custom indicator into the inner window containing the S&P 500
plot, moving it over the plot until the plot changes to a pink or lavender
color, then release your mouse button.  (This is called dragging and dropping
an indicator on an indicator.  The new indicator will plot in the same window
as the S&P 500 plot.)  You have three options here:
	
6a.  You can change the color of the S&P 500 plot to be the same as the chart
background color, so that it is effectively invisible.  (Double-click the S&P
500 plot to get to its "properties", then choose the color you need from the
Colors list.)

6b.  You can change the style of the S&P 500 plot to "invisible", which
effectively does the same as changing its color to match the background.
(Double-click the S&P 500 plot to get to its "properties", then choose
"invisible" from the Styles list.)

6c.  You can give both plots different colors so you can tell which is which.

7.  Save this chart as a Template.  (File|Save As, set "Save File As Type" to
Template, and give it a name, such as CMPRELST.MWT.) 

Any time you want to see Comparative Relative Strength of an equity against
the S&P 500, apply this template to the equity’s chart.  Note:  if you should
move the data file against which you are comparing, such as the S&P 500, this
template will no longer work, and would have to be recreated.


If you would like a hard copy of this faxed to you contact Technical Support
at 801-265-9998 or send me a e-mail with your fax number.

Cheryl,
Equis Support.