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Scan for RRG components

Hi Gord, Is there a way to scan with the RRG components - RS momentum and/or RS ratio (say moving above 100)? I did not see these two indicators on the list. If not, Chip can they be added in the near future ? Many thanks

Best Answer

  • gordgord admin
    Accepted Answer
    This is a question that should be sent directly to Stockcharts support, as they don't actively monitor this user forum.

    The problem is these are ratios and the scan engine doesn't have the horsepower to handle these types of calculations, they just become very large with many more combinations than in a regular scan.

Answers

  • markdmarkd mod
    edited March 2015
    If you keep lists of sectors, or industry indexes for each sector, then select those lists in RRG view and set the tail to one week it's super easy to see what's crossing the quadrant thresholds. If you also keeps lists of stocks with characteristics you like by industry, you can just load that list in RRG view from your list drop down and do the same thing. Super fast. Would be cool to see "rank by RRG(1)", though, I agree.
  • I would like to add my perspective on this. Let me know if you see anything incorrect or missing. I presume that at the time the scan engine was developed, only the Price Relative and Correlation indicators were around. The scan engine does not support Price Relative and Correlation for the following reasons:

    1.) If the scan engine were to support Price Relative, the scan engine would have to process a completely second data set as parameter input. This would add a whole new level of complexity to the scan engine. Only Price Relative and Correlation would benefit from this added complexity. It appears this was not justified at the time.

    2.) Even if the scan engine supported a second data set as parameter input, the end value of Price Relative is useless. So, programmatically, how could Price Relative return a result? The only useful idea I have is for Price Relative to cross a smooth version of itself. This is not in the literature, and enforcing this in the scan engine would seem more of a burden.

    In this support article: What indicators does the scan engine support?, the article states that "scans only work on one symbol at a time", which reinforces the above explanation.

    We are told by @Julius_RRG that RRG Charts do not provide signals. So, it seems strange that a Price Relative related indicator like the JdK RS Ratio and Momentum indicators crossing 100 would be a signal? I'm not convinced this is a signal.
  • Hi Kevo, your speculations sound reasonable.

    What I would like to see, if it's practicable, is a way to scan for or rank stocks by Price-Performance, which displays a per cent value on the chart. That makes everything comparable. So for instance, you could rank the nine sector SPDRs by per cent over- or under-performance relative to the sp500, or scan for stocks outperforming the sp500 by, say, 5%. Or stocks that were -10% 20 days ago but are greater than 0% now, i.e. gaining relative strength vs. the sp500. Apparently it's just a dream.

    As for the crossing 100 on the RRG, it's not necessarily a signal, but it's a point where the item changes quadrants, and so, at least in some people's minds, deserves a look-see. That makes sense to me, even if it's a somewhat arbitrary point to take an interest.
  • Scanning for relatives apparently is a problem because of the heavy load it would put on the servers. Which is something I can understand as opening up the relatives box is something like opening up Pandora's box... sooo many possible combinations .... I'm sure the people at SCC would love to offer it some day... just not now ...

    As for RRG, indeed @Kevo , they were never intended to trigger 'signals' although you can make a signal out of everything.. a 5-day breakout on a simple bar-chart can be seen as a 'signal'.. does that make the performance of a 5-day breakout system the 'performance of the bar-chart' ..? I don't think so.

    Same with RRG. A move from one quadrant to another can be seen as a signal, but also a move from left to right and vv could be seen as a 'signal' and any possible combination in between. So yes @markd it is indeed somewhat arbitrary but you may want to have a look :)

    WHO wants to look WHEN ... that's the big question, everybody looks at a bar-chart
  • Hi @Julius_RRG, yes I have looked at the RRG and I love it. It deserves a lot more of my time. I guess what I meant by arbitrary is, that there is so much to glean from the RRG that choosing just this one method (quadrant crossover) was short-changing all the other information you can get from studying the RRG. When I first read @Sierragrande 's question, I think I was thinking built in scan; but maybe he meant this as one example of many possible custom scans.
  • agree on the many possibilities to use / look at RRGs. wr scanning, as far as i have understood it. Anything that involves more than 2 symbols and thus more than two data series will be a problem.
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