in Search

Relative Strength

Last post 10-05-2005, 17:40 by StorkBite. 6 replies.
Sort Posts: Previous Next
  •  10-04-2005, 10:22 9111

    Relative Strength

    How to compute a relative strength line?

    Thanks in advance!
  •  10-04-2005, 14:26 9114 in reply to 9111

    Re: Relative Strength

    relative strengh Comparative?

    It is usually the price of one security divided by the price of another security.
    You should use the security function ... Something like:

    Close/Security("online:SYMBOL",Close)

    Patrick :mrgreen:
  •  10-05-2005, 3:59 9148 in reply to 9111

    Re: Relative Strength

    For more thorough Relative Strength Comparative studies, take a look at the URSC kit:
    http://www.metastocktools.com/URSC/URSC.htm

    More on the pitfalls of using regular RSC here:
    http://www.metastocktools.com/URSC/URSC-US.doc


    jose '-)
    MetaStockTools.com
  •  10-05-2005, 5:09 9152 in reply to 9111

    Re: Relative Strength

    Thank you for the replies.....

    But I am more interested in Canslim-type RS line, anyone helps?
  •  10-05-2005, 7:32 9156 in reply to 9111

    Re: Relative Strength

    The Canslim RS is based on much subjectivity.
    From http://www.investopedia.com/terms/c/canslim.asp :

    CANSLIM: A method for selecting stocks created by Investor's Business Daily co-founder William O'Neil. Each letter in the acronym stands for a key factor to look for in a company.

    The seven-part criteria is as follows:

    C - Current quarterly earnings per share has increased sharply from the same quarters' earnings reported in the prior year. (Beware of items in financial statements that can cause earnings distortions.)

    A - Annual earnings increases over the last 5 years.

    N - New products, management, and other new events. In addition, the company's stock has reached new highs.

    S - Small supply and large demand for a stock creates excess demand, and an environment in which stock prices can soar. Companies acquiring their own stock reduces market supply and can indicate their expectation of future profitability. Look for low debt-equity ratios.

    L - Choose leaders over laggard stocks within the same industry. Use the relative strength index as a guide.

    I - Pick stocks who have institutional sponsorship by a few institutions with recent above average performance. Be cautious of stocks that are over owned by institutions.

    M - Determining market direction by reviewing market averages daily.


    T/A & MetaStock is all about removing subjectivity where ever possible, so I doubt very much you'll get to hear much about the Canslim in this forum.


    jose '-)
    http://www.metastocktools.com/URSC/URSC.htm
    MetaStockTools.com
  •  10-05-2005, 15:51 9164 in reply to 9111

    Re: Relative Strength

    :) I have heard some rumors of some people wanting to put together a plug in (using QuoteCenter data) based on the CAN-SLIM methodology. I will let you know if anything comes out of it...

    :) M
    "It takes no more time to see the good side of life than it takes to see the bad."
    Jimmy Buffett
  •  10-05-2005, 17:40 9172 in reply to 9111

    Re: Relative Strength

    CANSLIM, not CAN SLIM.... the latter is a diet plan! j.k.

    Hey, several people have discussed the IBD100 and CANSLIM picks here on the forum as a fundamental starting point for technical analysis. The reason that I asked Patrick for the folder average indicator was for this very reason. I'm not hawking their system as being any more beneficial than others, but if you need a bit of hand holding, I think it's worth checking into. O'neils's books are some of the first that I read. I think the foundation of his plan is sound. However, I do not trade it verbatim. Anyway, that is my 2 cents. I'd be interested in any plug-ins. Let me know.
    Traders' Consortium
View as RSS news feed in XML