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Relative Strength Using PMO

I keep a chart list of of relative strength "pairs", ie. each SPDR sector against SPY (such as XLI:SPY) and then use the summary view for various time frames to see the percent change in that relative performance line in the sharp chart. That said, I'd like so be able to scan various indicator changes / signals on those pairs (or at least have stock charts define some basic sets of RS symbols) for crossovers and / or be able to rank which RS pair has the strongest RS of all in that group. Perhaps which one has the strongest PMO relative to the signal line.........I realize the RRG is a tool for this too.......SCTR is also a sign of RS.......I like the PMO signal and am looking for a quick was to know when there is a crossover on the RS trendline but you can't run alerts on "pairs" of symbols in a chart list set up for RS measurement. I requires a regular process of viewing all the RS charts for crosses which of course takes some time but not impossible.

Comments

  • markdmarkd mod
    edited February 19
    I'm not sure I understand the question, so I hope I'm not wasting your time, but according to Chart School, PMO is a "normalized" indicator, meaning PMO values can be compared directly among symbols. I think that means you don't have to compare each pair by RS (I'm assuming you are using Price-Performance, or just the ratio in the Price indicator)- PMO is already comparing them - a stronger PMO number means outperformance.

    So, to see which symbols are doing better against benchmark (like SPY), you could put the benchmark and the symbols you want to compare to it in a list and then rank the list by PMO. The symbols doing better than the benchmark will appear in the list above the benchmark, and those doing worse below it. You should be able to run a scan like this during the day and note whether symbols have changed ranks - which I think would be the equivalent to a crossover.

    I don't know if you can get an alert for crossovers in PMOs between symbols - e.g. alert me when the PMO for XLE crosses the PMO for SPY.
  • In CandleGlance view, you can add PMO to the view, so you could view your list in CandleGlance view and show the PMO (with whatever settings you like). Then scroll to see the crosses or near crosses, etc.

    You could also create your own CandleGlance chart style and incorporate the PMO into that one.

    The link below will take you to how to do it. I save my CandleGlance as a 460 size for my Market Summary and Industry Summary custom charts

    https://stockcharts.com/docs/doku.php?id=chartstyles:tool-specific-chartstyles
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