Registered User
Joined: 4/5/2005
Posts: 45
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I just read a book "Secrets for profiting in bull and bear markets" by Stan Weinstein.
He uses Relative Strength (compare a stock against SP-500) on his charts. This index fluctuates around zero line. Is there a way I can plot this index in TC2007 ?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Even if you knew the exact formula, I do not think it would be possible to plot this in TeleChart because the Personal Criteria Formula Language does not have syntax for referencing other symbols.
-Bruce
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Registered User
Joined: 1/28/2005
Posts: 6,049
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You can however create a RS line of
your watchlist stocks vs the SP-500.
Thanks
diceman
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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If you can give us the details of how the indicator is calculated I am sure we can construct it in SnapSheets for you.
- Craig
Here to Help!
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Administration
Joined: 9/30/2004
Posts: 9,187
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The attached .pane plots the difference between the percent change of the active symbol and a comparison symbol (which you can change from the QuickEdit menu). Also includes a smoothing average.
Is this what you're looking for?Attachments:
RS vs Symbol.pane - 7 KB, downloaded 522 time(s).
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Registered User
Joined: 4/5/2005
Posts: 45
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I found the construction idea in the other charting software and put it on this page: http://clothesparadise.com/rs.html (in case the forum policy does not allow to mention competitors)
Thanks,
Mike
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I assumed you multiply every day by the same IR on day one (which makes no sense to me...).
See if this does what you wanted:
Save it in the following folder:
\My Documents\My SnapSheets\Tool Parts\Chart
Once there, you can add it using the ADD STUDY button and choosing MY COMPUTER.
Attachments:
mmlmedy Price Ratio I.pane - 5 KB, downloaded 530 time(s).
- Craig
Here to Help!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I played around with normalizing to zero and came up with an idea similar to StockGuy's. Check it out:
Save it in the following folder:
\My Documents\My SnapSheets\Tool Parts\Chart
Once there, you can add it using the ADD STUDY button and choosing MY COMPUTER.
Attachments:
mmlmedy Price Ratio II.pane - 6 KB, downloaded 490 time(s).
- Craig
Here to Help!
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (mmlmedv) Is there a way I can plot this index in TC2007?
mmlmedv,
Yes. There is. Just plot the RS Indicator with respect to any Index you choose, say SP-500. If you wish to see the "Zero Line", just set the horizontal line of the pointer so that it coincides with the RS line at the left-edge of the chart.
Yhe scale on the graph above will not be the same as either described in the link you supplied, but the plot will be identical to both.
Thanks,
Jim Murphy
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Registered User
Joined: 1/1/2005
Posts: 2,645
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Addendum:
All six plots described until now (diceman, StockGuy, Craig_S, bustermu, and the two in the link supplied by by mmlmedv) are the same, just to different scales.
Thanks,
Jim Murphy
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Registered User
Joined: 1/1/2005
Posts: 2,645
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Addendum2:
I am in error. The plot described by StockGuy is not the same as the other five.
Sorry,
Jim Murphy
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Registered User
Joined: 4/5/2005
Posts: 45
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Thank you all guys for responding with the suggestions.
I tried all and put the results on this page: http://clothesparadise.com/aa.htm
As you can see, neither one works the way it works with the other software. The idea is to know when Relative strength is above or below zero and the slope of it.
The RS(or price ratio) on a Disney chart croses to above 0 in the beginning of December. All snap sheets charts just do not show it.
Bustermu, the pointer's horisontal line disappears when I jump to another ticker, while the vertical line remains on the same spot.
Thanks,
Mike
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Please save the attached file to the following folder:
\My Documents\My SnapSheets\Tool Parts\Chart
Once there, you can add it using the ADD STUDYbutton and choosing MY COMPUTER. You will need to select BarChart.Start Date when prompted (twice).
QUOTE (mmlmedv) As you can see, neither one works the way it works with the other software. The idea is to know when Relative strength is above or below zero and the slope of it.
The RS(or price ratio) on a Disney chart croses to above 0 in the beginning of December. All snap sheets charts just do not show it.
I've included a picture of the indicators scaled to the same size.
It should be noted that you will only be able to match this chart if your zoom in SnapSheets is set to start the chart on 7/11/2006. The Disney chart crossing through zero vs the SP-500 on 11/7/2006, 11/10/2006 and 12/4/2006 are only crossovers relative to the zeroing at the beginning of both charts on 7/11/2006. These crossovers will happen on different dates or not at all if the chart start date changes.Attachments:
mmlmedvSymbolRSvsSymbol.pane - 9 KB, downloaded 511 time(s).
-Bruce
Personal Criteria Formulas
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (mmlmedv) Bustermu, the pointer's horisontal line disappears when I jump to another ticker, while the vertical line remains on the same spot.
Mike,
There is no difference in the plot of RS in TeleChart and the two described in the link you supplied other than the scale.
It is true that if you wish to plot the "Zero Line" using the pointer horizontal line, you have to re-adjust it for any change of Symbol or Chart settings. If you put a Moving Average on the RS line, be sure to set the "Zero Line" on the RS and not its Moving Average.
Please notice that for "Zero Line" crossings on two charts of the same symbol, whatever the source, to agree, the left-edge must be the same date on both charts. That, in itself, should indicate the significance (or lack thereof) of such ceossings.
Thanks,
Jim Murphy
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Registered User
Joined: 1/1/2005
Posts: 2,645
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Bruce,
My post was made before I was able to observe yours. Hopefully, together we will convince Mike to ignore the crossings of the "Zero Line", or, better said, ignore the "Zero Line".
Thanks,
Jim Murphy
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Registered User
Joined: 4/5/2005
Posts: 45
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Bruce, the file is not attached to your last post. If it is still available could you post it again please?
Thanks Jim for advice on a zero line. I did not realize that RS is not in the same place regardless of the time frame. Now it seems useless to me.
Also, a very famous author Stan Weinstein in his very famous book says "do not buy a stock if the RS is below zero". Now it is not clear what he actually meant. Here is a review of his stock advisory service:
No method works most of the time.
While there is a lot of good stuff in this book, like the importance of the 30wk ema (150day ema) as the threshold between rising and falling stock price for the intermediate term trend, the method didn't work all that well even when applied by the founder himself. I took a year's subscription once, to "The Professional Tape Reader" where in Mr. Weinstein attempted to use his own methods for the benefit of his subscribers. He usually had about 100 stocks recommendations, to buy on stop, with stop loss price also.
Not only were there too many stocks to choose from (nobody buys 100 stocks), but most times you got stopped out without profits, on the ones you did try. Totally useless in practice.
So wags the world of the stock market guru.
I suppose I have to find some other indicators to work with.
Thanks,
Mike
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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mmlmedv,
The relative strength (RS) graph is generated by comparing the relative price performance of any two items (such as two stocks or a stock and a market index). If the RS line is ascending, then the active symbol is out-performing the comparison symbol. If the RS line is descending, the active symbol is under-performing the comparison symbol.
I've attached (or re-attached, I'm not sure) the .plot file to my post.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (mmlmedv) I suppose I have to find some other indicators to work with.
Mike,
Don't throw out the baby with the bathwater. Just throw out that "Zero Line" business. The "Zero Line" described in the link you supplied is not the one used by Stan Weinstein anyway.
The RS is a perfectly fine Indicator. It could be improved by plotting the logarithm of the price ratio, but, because of custom, I doubt that will happen any time soon.
Thanks,
Jim Murphy
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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QUOTE (bustermu) It could be improved by plotting the logarithm of the price ratio, but, because of custom, I doubt that will happen any time soon.
That's one of the nice things about SnapSheets. It's pretty straightforward to make such adjustments on your own.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 4/18/2005
Posts: 4,090
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I am reading the same book. Wienstien gives the formula as Price/price of comparison symbol,, in this case Sp-500. He also mentions that aside from oscilating around center line (almost as if it was an aside) that the version he's using also has wilders smoothing.
i got the sensethat he wasn't terribly fussed with the particular version of RS ...BUT if the centerline aspect was available then use it. The most important thing being the relatie health of RS at teh time of a high volume breakout. The centerline helps to paint the picture more clearly.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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scottnlena,
The trainers can't give setting, interpretation or investment advice. I will however say that reading the entire topic (you may have already done so, I could not tell from your post) should provide significant insight into the value, usage and usefullnes of a centerline with a Relative Strength indicator.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 4/18/2005
Posts: 4,090
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I have... My remarks were more to any others that may have the same questions I had.. the Blocks Pane seems to work well.
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