Tom, If comparing individual stocks to different relative strength base symbols/indexes the individual values of the relative strength ratios will be essentially meaningless. There are a number of ways to "rank" by relative strength if each symbol is compared to the same base. One of the simplest ways might be to calculate the rate of change of the relative strength ratio plot over a specified period. Ranking of these ROC values will give a more meaningful comparison of strength.
I'm pretty sure that the calculation for RelStrength is in the amibroker documentation somewhere. If not, it is definitely to be found by searching the group messages. There are (or used to be) also some RelStrength ranking "systems" posted in this group's files section or in the AFL library at amibroker.com. Tim --- In [email protected], "trb0428" <[EMAIL PROTECTED]> wrote: > > Does anyone know the significance of the value returned by > relstrength("tickername") ? I want to use the value that is returned as > my positionscore for deciding which trades to take when I have > multiple buy signals but I can't find a definition of the value that is > returned so I can compare values on a normalized basis. For example, my > first buy candidate may be a technology stock that I am comparing to > the Nasdaq and receive a relstrength("Nasdaq") value of x, and my > second buy candidate may be a industrial stock that I am comparing to > the Dow and I receive a relstrength("Dow") value of y. How do I compare > x and Y ? If I were comparing both symbols to the same index, I suppose > I could just choose the higher number, but since I am comparing stocks > from different sectors/industries to different benchmarks I am needing > a way to compare the values returned by Relstrength. Does anyone know > how this is being calculated...I have searched the documentation but > can't find anything. > > TIA, > Tom >
