Relative Strength (Mansfield)

This variant of Relative Strength was heavily used in the book “Secrets For Profiting in Bull and Bear Markets’ by Stan Weinstein. Weinstein was using the indicator mainly on weekly charts. In our charts, the default value for the parameter is 52, which is also meant to be used in the weekly timeframe. The meaning of this parameter will become clear shortly.

The formulae of this indicator is a bit more difficult than the regular Dorsey RS, but it is worth understanding:

RSM = (( RSD(today) /sma(RSD(today), n)) - 1 ) * 100

Where:

• RSD = Relative Strength (Dorsey) ( see above …)
• SMA = Simple moving average over n days.

So, the Dorsey Relative Strength value is divided by its own n-day moving average and then one is subtracted. If we look at the daily timeframe and use 200 for n, this means:

• We get 0 if the RSD is exactly equal to its 200 day moving average.
• We get a negative number if the RSD is below its 200 day moving average.
• We get a positive number if the RSD is above its 200 day moving average.

Most Technical analysists are familiar with the stock price being above or below a certain Simple Moving Average. With Mansfields RS, the same applies: if the relative strength is above its moving average, positive values are seen, if it is below, we see negative values.

Usage:

It is not possible to create Mansfield Relative Strength as in indicator in either version of TC2000.

Hi Bruce, any updates as to whether or not the Mansfield Relative Strength indicator can be charted in TC2000?

Alternatively, is there any way I could do this:

I am already able to plot Relative Strength Indicator vs SPY (standard TC2000 indicator) (RS) together with its 200 day SMA (RS SPY 200 SMA). This is great. The data is already there. But to go one step further is there any way I could reference these vanilla indicators in a PCF and write:

(RS SPY) / (RS SPY 200 SMA) ?

Doing so would basically yield the Mansfield Relative Strength Indicator. The formula would normalise the 200 SMA to 1, a flat horizontal line. It's easier to visually pick up changes when the 200SMA is stationary versus when both the daily RS and RS SMA200 are moving simultaneously.

I tried writing out a PCF (simply wrote C) and then changed data source to RS SPY. However, this doesn't work and nothing is plotted. 

Any ideas?

Thanks!

Screenshots for reference:

https://www.dropbox.com/s/or3pkkjlwipchws/Screen%20Shot%202015-06-27%20at%2012.19.11%20%283%29.png?dl=0

https://www.dropbox.com/s/17fy92i384j0zb6/Screen%20Shot%202015-06-27%20at%2012.20.25%20%283%29.png?dl=0

Try adding a Price Percent Oscillator (PPO) indicator (but not Histogram) to the chart. Then change its data source to use the Relative Strength (RS) indicator.

You will want to set the short period to 1 and the long period to 200 to get something similar (maybe even exactly the same) as what is being described.

Hi Bruce,

Would you be so kind to plot the avobe PFC adaptation formula of the mansfiled Relative Strenth for TC2000 V-17.

Thank you.

There isn't a way to write a Personal Criteria Formula for this because there is no way to reference another symbol in the PCF Language.