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Hi All,
First post. I am following Stan Weinsteins investing strategy and one of his three key points is comparative relative strength.
A search on the forum seems to turn up a reference to Jose's toolkit, which is great but
1) most of these references are back in 2005/2006, has metastock moved on since then?
2) it costs 695 USD on top of metastock's 499 USD, which seems a lot.
3) the site hasn't been updated since 2007.
All I really want to do is run a scan across multiple markets and ideally highlight conditions where the close is above the 150day MA, volume has increased by 50% or more that week and comparative relative strength (where the index the stock is a constituent of is the baseline) is trending upwards (so not necessarily above the 0 or 100 line but the line is going up.)
I asked a question of tech support, but all I got was it should be possible. I don't really want to spend 499 USD to find out it doesn't do it.
Help appreciated
Phil
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
Was thanked: 16 time(s) in 16 post(s)
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The toolkit does a lot and provides a lot of information -- how much of that information is pertinent to you? Only you can answer that.
MS has a built-in RSC() function but it has some issues which may or may not affect your trading; again only you can tell. If you choose to use the RSC() you must be aware of those limitations. If you decide to rewrite the functionality then you can customise precisely what you are looking for to support your needs.
The developed product has already done a lot for you, so how much is your time worth? You either do the research and work yourself to end up with a product which does what you want, which costs less money buts costs more time; or, you spend some money and save time to get a product which may or may not suit?
I notice from your description of requirements, you may also have to deal with multiple time-frames, which is another kettle of fish.
wabbit [:D]
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 10/6/2005(UTC)
Posts: 51
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I dont understand the mystique which has been built up around formulae for comparative relative strength. Compare the growth of the security to the market reference. (c/ref(c,-90)/ security ref(SPY, c/ref(c,-90)) etc- then do a moving average to smooth it if necessary. Change the period to 10 days, 60 days, 220 etc. Pretty easy. This isnt something that requires a $500 investment with black box mystique.
Plot this as well with an rsi to gauge how the security performs against itself and its a pretty reliable set of indicators.
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
Was thanked: 16 time(s) in 16 post(s)
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Two of the (many) problems to overcome when attempting to perform RSC analysis include: - The synchronization of the data being compared. MS works with bars of data, not with data on a particular date i.e. one symbol may have 90 contiguous daily bars but in the other symbol those 90 bars may cover a much longer period.
- The choice of a common starting point for all constituents in the index being examined. If one constituent has been trading say 45 bars and has an RSC score of 20, how can this be compared with another equity which has been trading for say 90 bars.
Correction of these issues is not as simple as it sounds in MS. wabbit [:D]
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