[EquisMetaStock Group] Detecting Changing Relative Strength.

[Kevin Barry <kevin_barry@xxxxxxxxxxxxx>]

Here's a little idea that I stole from Tradestation that you might find 
useful when deciding whether the trend of securities in your sectors, 
indexes or watchlists is strengthening or weakening.

Create a new exploration and name cols A, B and C 200 Day, 50 Day & 20 Day. 
I use this exploration on intraday data so I have further columns called 1 
Day, 1 Hour, 15 Mins but I want to keep this explanation simple.

Enter the following formulas:

colA: If(Mov(C,50,E) > Mov(C,200,E),1,0)
colB: If(Mov(C,20,E) > Mov(C,50,E),1,0)
colC: If(Mov(C,5,E) > Mov(C,20,E),1,0)

The exploration report enables you to scan a long list of securities very 
quickly and spot weakening or changing trends. Obviously, a security with a 
1 in every column is in a strong uptrend and a security with a zero in 
every column is in a strong downtrend. A reversal in the right hand 
column(s) might presage a change of longer term trend.

In order to make the report more readable, you can paste the results into 
Excel and then do the following:

1. Select all the cells containing 1 and 0
2. Click on Format/Conditional Formatting
3. For Condition 1, set cell value equal to 1 and format the cells to have 
a green font and green pattern
4. Click on Add and for Condition 2, set cell value equal to 0 and format 
the cells to have a red font and red pattern
5. Click on OK

In Excel, you can also sort the columns in order to provide a graphical 
representation of relative strength.

Also, by comparing the current and previous explorations, you can get a 
feeling of what is changing and how quickly.

The above formulas are only examples. You can use whichever parameters or 
indicators work for you.

Regards,
Kevin


 
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