Re: Relative strength of two securities: summary

[Sanford Morton <smorton@xxxxxxxxx>]

I received a number of replies to my question on how to compare the
relative strength or weakness of two securites. Some were off the list, so
I'll summarize anonymously, since I don't have permission to repost.

1. Look at "TrendStrength" indicator in EntryPoint2000i. Use two charts
side by side.

2. A ratio constructed from the stocks respective volatilities is perhaps
a reasonable measure of the two's relative performance. For example,
divide the most volatile by the least volatile to arrive at a factor and
its inverse by which they should both move. However, applying this notion
intraday is likely to be fruitless, but I suspect it would result in a
profitable position trading system.

3. Examine the statistical correlation; "Correlation" is a built-in
indicator in TS2ki.

4. An indicator called AccuTrack comes with FastTrack software. It is the
short term ema of the spread of two long term ema's of % Daily price
change.

5. http://www.market-topology.com has indicators which show how closely
different stocks correlate over time.

Thanks all very much for your comments.
Sandy Morton