Interpretation between Weekly RRG and Daily RRG

HoiMing

I am just a 5-day new joiner to the StockCharts.com

I would like to ask a simple question regarding the interpretation between a Weekly RRG and Daily RRG.





I assume 1 week with 5 trading days.
So in a weekly RRG chart, a 4-week RRG should have path for the same stock as a 20 days RRG chart.

The picture shows two stocks TSN & FSLR in Weekly RRG and Daily RRG.

For weekly RRG chart, 4 weeks RRG for TSN starts in Green zone.
But for daily RRG chart, the 20 days RRG for TSN show it starts in Red zone.
So why 2 RRG charts for same stock tells different story ?

Similarly for FSLR
for weekly RRG, it ends in Yellow zone and is far far away from Red zone.
for RRG daily chart, it ends in Yellow zone which is very close to Red zone already.


Could any experienced member tell me how to interpret these weekly and daily RRG ?

Thanks.
HoiMing

markd

Hi @HoiMing , welcome aboard.

You might be interested in reading Julius' blog article:

stockcharts.com/articles/rrg/2014/08/daily-data-now-available-for-rrg-charts.html

It appears he does respond if you add a comment with your question, although maybe not right away.

I am not an expert on this tool, but I think the answer is probably something like, the look back period for the tail is not the same as the look back period for calculating the indicators. I didn't see the actual calculations for these indicators explained anywhere, so I don't know if that's true.

It's possible he uses the same number of data points in each time frame, for example, 100. If that's so, then the look back period would be 100 weeks in the weekly time frame, and 100 days in the daily. Consequently, stocks that are strong in the last 100 days might have been weak over the last 100 weeks.

I'm guessing the length of the tail you choose to display just shows the history of the calculation during that period - it doesn't change the number of data points used in the calculation of the indicators.

HoiMing

Thanks Markd