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I was wondering what websites show you the relative strength of a stock(not rsi). Also, (if there is a way) I wanted to know how to screen for relative strength on stockcharts.

asked Apr 16 '12 at 20:18

xxclutchxx's gravatar image

xxclutchxx
155 128

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Deciding on the slope, as already suggested by one of the posts in this thread, specifically, comparing percentage change in your stocks verses percentage change in the sector or the index, is certainly one way to build a useful filter (scan). However, I find that, at times, it might be too rigid to let an algorithm make my relative strength decisions. Sometimes I need to superimpose judgemental reasons while examining potential watch list charts. Thus, I tend to lean towards using the feature in StockCharts on the "Candleglance" view. I run many filters (scans) and then view the outputs using the "Price Relative" Indicator within Candleglance, a feature that some amazing coder built for us, already, in StockCharts.com. [Whoever did that, thank you!] I then discard any stock underperforming my sector unless some judgemental reason, or recent news item, tells me to keep it for further detailed analysis. Hope this helps. May you win big in the markets!

(Mar 14 '13 at 17:37) 8Asteroid8 8Asteroid8's gravatar image

On Stockcharts, you use a colon between the two tickers you are comparing. Here is an example:

http://stockcharts.com/h-sc/ui?s=$TRAN&p=D&b=4&g=0&id=p52627427980&a=170736541&listNum=6

See bottom of chart for example. So if wanted to know the relative strength of AAPL to the NASDAQ 100, your formula would be AAPL:$NDX. Remember that if you are using ANY relative measurement, you must have something to relate it to.

Stockcharts also has tools like the Market Carpet which allows the comparison several ticker symbols against each other (en masse).

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answered Apr 16 '12 at 21:07

Anonymous's gravatar image

Anonymous
7.3k 38

edited Apr 16 '12 at 21:10

i just tried that example. i get 0.22 when comparing. ive heard that relative strength is measured 0-99. so does that mean that aapl is 22 in comparison to the nasdaq?

(Apr 16 '12 at 21:15) xxclutchxx xxclutchxx's gravatar image
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nope .. that's comparing apples and oranges ..

sounds like you are referring to the proprietary RS from Investor's Business Daily (IBD) .. that is another thing entirely because it is based on fundamentals (not technicals) ..

look at my chart example .. when the $TRAN is leading the $INDU the area below my chart will be going up .. basically I am demonstrating a visual method of knowing whether a stock is leading or lagging its sector .. this is all purely technical

(Apr 16 '12 at 21:26) Anonymous Anonymous's gravatar image

Anon...IBD's RS or even mine or anyone else's has nothing to do with fundamentals...It simply takes the price vs. the price of something else; e.g. A stock vs. all the other stocks in the database. However, there is usually a stronger weight attributed to a more recent period...For example, on the standard one-year RS there is more weight on the last quarter...Problem is...and I still have not figured this out completely...Calculating the RS of an IPO which has not traded for the whole period that the RS is calc'd.

Doug

(Apr 18 '12 at 01:32) Sharptraders Sharptraders's gravatar image

@Sharptraders

OK, I have always been under the impression that IBD had some fundamental data in the formula because the RS was based partially on quarterly progress .. and then the stocks were ranked (0 to 99) by value.

(Apr 18 '12 at 12:11) Anonymous Anonymous's gravatar image

Yes the IBD RS is a compilation of fundamental data more than technical data according to what I have read.

(Apr 18 '12 at 12:18) Windsurf Windsurf's gravatar image

No...perhaps you are confusing it with IBD's EPS ranking???...RS has nothing to do w/ fundamentals.

Right off the IBD site:

•Earnings Per Share Rating (EPS) compares a company's recent quarterly and annual earnings to those of other publicly traded firms. Specifically, it looks at the past two quarters and the past three to five years of profit growth. That makes it easier to assess a firm's short- and long-term earnings growth. ◦EPS Ratings range from 1 to 99, with 99 being the best.

•Relative Price Strength Rating (RS) compares a stock's price change during the past 12 months to the price moves of other stocks. It gives extra weighting to a stock's price performance during the past three months.

(Apr 18 '12 at 23:23) Sharptraders Sharptraders's gravatar image

Canslim in a nutshell advocates buying high EPS stocks w/ high RS ratings when the market is right and the group is moving. Big problem with their Industry group ratings tho...Their groups are based on 6 month price performance...That is waaaaaay too long.

Also, even for fundamentalists...Their EPS percentile rank is based on 3 to 5 year performance...it is more heavily weighted on recent performance(as you can see above) but I don't recall the exact formula...Just for comparison...My IIC 100 which is more for fundamentalists only uses the most recent qtr EPS along with up to 8 qtrs of projections...My philosphy is "I don't care what you did for me yesterday...I wanna know what you are gonna do for me tomorrow"...However, for my own trading I don't really use the IIC 100 for much...Doug

(Apr 18 '12 at 23:35) Sharptraders Sharptraders's gravatar image
showing 5 of 7 show all

Seems that many people are interested in scanning for stocks that exceed a sector average. Now as we know you can plot a ratio chart for a single stock against an index or anther stock, but you can't run a scan on a ratio as the ratio is different for each stock pair. And basically with ratio charts we are just looking at whether the ratio is increasing or decreasing, outperforming or underperforming.

So we want to scan for energy stocks that are outperforming the energy sector XLE by say 5%, and our period of interest is 6 months. We could look at a chart of the XLE in performance mode get the 6 month percent change, or we could look at the new sector summary page and get the same info for a 6 month period. Now I just run a scan for stocks in the energy sector, or my energy watch list that are exceeding that number.

So for today the XLE over 6 months is showing 3.28% gain, so I'll set up my scan to look for energy stocks that are up say 8% + over 6 months.

[type = stock] 
and [group is EnergySector] 
and [PctChange (125, close) > 8]
//and [ROC(125, SMA(20, close)) > 8]
//and [fav list = energy watch]

Note I've added a couple of other sections, for your own list, or looking at the percent change of an SMA instead of just the close, which can be rather choppy.

Hope this gives you some ideas.

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answered Apr 21 '12 at 20:25

Gord's gravatar image

Gord
18.4k 1122

edited Apr 21 '12 at 20:27

Problem is relative strength (not Wilder's RSI)is a relative number. First define your reference point of choice for what you are looking at. Some might start with the S&P500, now what time frame are you looking at, a few days, weeks, months, years. Just pick a time frame, pull up the reference chart, use performance mode to see the percent gain over that time period. You can then write a scan to look for stocks which have a percent gain that exceeds that number over the same time period.

Also try looking at market carpets, they have a price performance setting which can be up to 45 days, then just look at what your reference index has done over say 45 days and look for sectors and individual stocks which have beaten that number.

http://stockcharts.com/freecharts/carpet.html?[SUM]

Gord

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answered Apr 16 '12 at 21:15

Gord's gravatar image

Gord
18.4k 1122

edited Apr 16 '12 at 21:19

Is there a scan for relative strength example XXXX:$SPX > 1.00 where XXXX is the candidate security? Thx. /rob

(Apr 18 '12 at 11:17) rawb rawb's gravatar image

Rawb, no a scan of a ratio is not possible, also it wouldn't be much good as the raw ratio number could be all over the map depending on the price of a particulare stock. Take $gold $1600, vs, GLD $140 both track the POG but a ratio with the $SPX would yield above 1 for $gold and about 0.1 for GLD.

If you want to look for stocks that are beating the performance over time of a particular index, its easy to do, just follow this link, it should help you out.

http://scan.stockcharts.com/questions/2408/is-a-rs-vs-index-scan-possible/2427

(Apr 21 '12 at 15:43) Gord Gord's gravatar image

@Gord: I get why you can't scan for the Price ratio - the numbers returned would be all over the map. But what about Price Performance, where the number returned would be a per cent? For instance, I might want to scan for stocks in my energy list that have outperformed the XLE by at least five per cent in the last six months. I can see a problem in specifying a time frame - some people will want six months, some more, some less. But I would think if there is demand, it would be technically doable.

(Apr 21 '12 at 17:42) markd markd's gravatar image

alt text

SC has two methods of showing relative strength. Unfortunately, so far, you can't scan for either one.

The "Price" option plots a simple ratio (second panel). If the line ticks up, the left hand item (KO)gained more or fell less than the right hand item ($SPX) and if it ticks down, KO gained less or lost more than $SPX.

The "Price Performance" option is similar (third panel) but adds a zero line which represents the level of $SPX at the very first bar on the chart. If the line is above zero, KO has advanced more than $SPX since that date, and if below, less. The MA is optional, but I think adds clarity.

Notice that KO was showing poor RS through the middle of the chart, while it's pattern was pretty bullish - several strong up days approaching it's 260 day high and RSI above 50.

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answered Apr 17 '12 at 19:53

markd's gravatar image

markd
14.6k 1523

edited Apr 17 '12 at 20:27

If limiting your scope to S&P500 stocks is not a problem, I would recommend using market carpet and compare their collective PPO's. You can instantly see which ones are the strongest and weakest stocks, and the strongest and the weakest sectors at a glance. I'm attaching the following picture for you to view.

From the carpet view, Con. staples and utilities show relative strength and energy and financials shows relative weakness for the past 20 days, and AVP is showing relative strength and SHLD is showing relative weakness.

alt text

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answered Apr 18 '12 at 06:15

ekwong's gravatar image

ekwong
8.3k 13039

edited Apr 18 '12 at 06:18

There is a web site that Joanne Klien uses to get her relative strength numbers that she posts with her charts on stockcharts public list called Above the Green Line. You can e-mail her at thegreenline1@hotmail.com and she will tell you what it is.

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answered Apr 19 '12 at 07:41

Tango's gravatar image

Tango
845 11118

Just received notification that admin accepted an answer here...But I'd like to make it clear that Relative Strength has absolutely nothing to do with fundamentals...It is simply a measurement of price vs. another price altho we weight it with the most recent period having more weight...When we calc 1 yr RS we use 20/20/20/40 % per qtr...Doug

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answered May 13 '13 at 00:59

Sharptraders's gravatar image

Sharptraders
3.3k 1736

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Asked: Apr 16 '12 at 20:18

Seen: 5,433 times

Last updated: May 13 '13 at 00:59