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Scan for RRG components
in Scanning
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
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Best Answer
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gord
admin
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.0
Answers
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.
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.
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