Relative Strength Question

71Warhawk

what would be a decent way to look at the different sectors or industry groups or commodity, to determine which one/ one's show improving relative strength and then determine which individual stock to purchase?

Thanks,

Gary

lmkwin

If you have a list of the sectors or industry groups you can run a scan against that list using the

PctRelative function as the Rank by Statement.


// Your sector or industry group list
Your sector list

Rank by [PctRelative(20,$spx)]

Pretty simple scan. You put your list in. You run the Rank By and it should output a ranked by Relative strength listing of your list vs the SPX last 20 days.

Of course you can change it up if you like for period or change $SPX to whatever benchmark you want like QQQ, or IBM or any symbol that has a value.

After you figure out your stronger RS sectors or industries, you do another scan

This time the scan is looking at the sectors or industries you want

Then put the PctRelative filter in that was in the rank by of the 1st scan, but this time change the $spx to $Sector or $Industry.

This will then look at securities in those sectors or industries and look at the RS against the respective sector or industry the securities resides in.

lmkwin

The format would look like this

and [PctRelative(20,$Industry)]

or like this....

and [PctRelative(20,$Sector)]

You could even combine all three

and [PctRelative(20,$SPX)]
and [PctRelative(20,$Sector)]
and [PctRelative(20,$Industry)]

but this negates your original question or desire to find the top ranked RS sectors or industries and then run a scan on the stocks in those sectors or industries.

Remember to use a Rank By statement when desired. It sorts the returned results by whatever you want.

Rank by [MFI(25)]

It would be great if you could "nest" a rank by, but you can't.

71Warhawk

Thanks Imkwin, I am very thankful for your help. I will go to work on this tomorrow. If I have any questions will it be alright to ask you further questions?

Thanks,

71Warhawk

lmkwin

post them on this forum and you will most likely get responses. This forum is designed for everyone that would like to, to ask questions, make comments or share helpful information.

There are very few wheels that haven't been invented yet. I find that the best way to learn is to ask questions and to answer them.

71Warhawk

OK I will. Thankyou

71Warhawk

I am doing something wrong. The scan is not sorting for me. I created a test list from the six industries in the Communications Sector as my chartlist.

This is the scan I used. Any idea what I did wrong?

[PctRelative (20,$spx)]
and [favorites list is 12] // 1 DJ Industries


Thanks,

71Warhawk

lmkwin

You don't technically have anything for the scan to do other than list your favorites list 12

The PctRelative is not telling the scan engine to do anything. If you want it to be used as a filter you need to tell it what the PctRelative value to screen for

[PctRelative (20,$spx) > X]

for example.

If you want the results sorted, you would put a Rank By statement as the last line of the scan.

Rank By [PctRelative (20,$spx)]

for example.

This would sort your list

[favorites list is 12] // 1 DJ Industries
Rank By [PctRelative (20,$spx)]

71Warhawk

Thanks Imkwin, it worked beautifully.

71Warhawk

[PctRelative (20,$spx)]
and [favorites list is 12] // 1 DJ Industries
and [PctRelative (20,$spx) > 1.1]

Above is my SCAN.

Here is what I think my scan, I would appreciate it if you would let me know what it really says?

I am hoping it says give me the DJ Industries (in my chartlist) that has beaten the $SPX over 10% over the last 20 trading days.

Thanks,

71Warhawk

lmkwin

Lose the 1st line. It's not a filter/ scan statement.

Lose the And in front of the 2nd line.

3rd line is asking for 1.1%. If you want 10% then change the 1.1 to 10

If you want to then Rank the returned symbols by their PctRelative, take that 1st line and put it as the last line with a Rank By in front of it.

[favorites list is 12] // 1 DJ Industries

and [PctRelative (20,$spx) > 10]

Rank By [PctRelative (20,$spx)]

71Warhawk

Thanks Imkwin! I made the changes you recommended. Worked great. It's dangerous to think I have the right tool in my hand and then later to find out I have a 10 lb sledge hammer in my hand when I need a finishing hammer. (Probably a stupid example, but the best I can come up with this morning.)

All the Best,

71Warhawk

lmkwin

You still need to avoid hitting your thumb as you start.

71Warhawk

You're right and that is easier said than done. Thanks again for your help.