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Registered User
Joined: 10/13/2011
Posts: 38
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Hi,
Does anyone know if its possible to create a relative strength indicator that compares a stock against the S&P500 over the last say 2-5 Wave Counts (Elliot or simlar)?
Thanks!
Yi
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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I do not know of any good way to do these sorts of wave counts in TC2000 in order to determine the period over which to calculate the relative strength indicator. In addition, there really isn't a way to reference another stock in a Personal Criteria Formula in order to reference SP-500 to calculate the relative strength.
-Bruce
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Registered User
Joined: 10/13/2011
Posts: 38
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I see how that would be hard.
I did have this formula, maybe you can help me reverse engineer how many bars it measures and by what method it uses to measure:
126.0509 * (C / C1 + 17 / 18 * (C1 / C2 + 17 / 18 * (C2 / C3 + 17 / 18 * (C3 / C4 + 17 / 18 * (C4 / C5 + 17 / 18 * (C5 / C6 + 17 / 18 * (C6 / C7 + 17 / 18 * (C7 / C8 + 17 / 18 * (C8 / C9 + 17 / 18 * (C9 / C10 + 17 / 18 * (C10 / C11 + 17 / 18 * (C11 / C12 + 17 / 18 * (C12 / C13 + 17 / 18 * (C13 / C14 + 17 / 18 * (C14 / C15 + 17 / 18 * (C15 / C16 + 17 / 18 * (C16 / C17 + 17 / 18 * (C17 / C18 + 17 / 18 * (C18 / C19 + 17 / 18 * (C19 / C20 + 17 / 18 * (C20 / C21 + 17 / 18 * (C21 / C22 + 17 / 18 * (C22 / C23 + 17 / 18 * (C23 / C24 + 17 / 18 * (C24 / C25 + 17 / 18 * (C25 / C26 + 17 / 18 * (C26 / C27 + 17 / 18 * (C27 / C28 + 17 / 18 * (C28 / C29 + 17 / 18 * (C29 / C30 + 17 / 18 * (C30 / C31 + 17 / 18 * (C31 / C32 + 17 / 18 * (C32 / C33 + 17 / 18 * (C33 / C34 + 17 / 18 * (C34 / C35 + 17 / 18 * (C35 / C36 + 17 / 18 * (C36 / C37 + 17 / 18 * (C37 / C38 + 17 / 18 * (C38 / C39 + 17 / 18 * (C39 / C40 + 17 / 18 * (C40 / C41 + 17 / 18 * (C41 / C42 + 17 / 18 * (C42 / C43 + 17 / 18 * (C43 / C44 + 17 / 18 * (C44 / C45 + 17 / 18 * (C45 / C46 + 17 / 18 * (C46 / C47 + 17 / 18 * (C47 / C48 + 17 / 18 * (C48 / C49 + 17 / 18 * (C49 / C50 + 17 / 18 * (C50 / C51 + 17 / 18 * (C51 / C52 + 17 / 18 * (C52 / C53 + 17 / 18 * (C53 / C54 + 17 / 18 * (C54 / C55 + 17 / 18 * (C55 / C56 + 17 / 18 * (C56 / C57 + 17 / 18 * (C57 / C58 + 17 / 18 * (C58 / C59 + 17 / 18 * (C59 / C60 + 17 / 18 * (C60 / C61 + 17 / 18 * (C61 / C62 + 17 / 18 * (C62 / C63 + 17 / 18 * (C63 / C64 + 17 / 18 * (C64 / C65 + 17 / 18 * (C65 / C66 + 17 / 18 * (C66 / C67 + 17 / 18 * (C67 / C68 + 17 / 18 * (C68 / C69 + 17 / 18 * (C69 / C70 + 17 / 18 * (C70 / C71 + 17 / 18 * (C71 / C72 + 17 / 18 * (C72 / C73 + 17 / 18 * (C73 / C74 + 17 / 18 * (C74 / C75 + 17 / 18 * (C75 / C76 + 17 / 18 * (C76 / C77 + 17 / 18 * (C77 / C78 + 17 / 18 * (C78 / C79 + 17 / 18 * (C79 / C80 + 17 / 18 * (C80 / C81 + 17 / 18 * (C81 / C82 + 17 / 18 * (C82 / C83 + 17 / 18 * (C83 / C84 + 17 / 18 * (C84 / C85 + 17 / 18 * (C85 / C86 + 17 / 18 * (C86 / C87 + 17 / 18 * (C87 / C88 + 17 / 18 * (C88 / C89 + 17 / 18 * (C89 / C90 + 17 / 18 * (C90 / C91 + 17 / 18 * (C91 / C92 + 17 / 18 * (C92 / C93 + 17 / 18 * (C93 / C94 + 17 / 18 * (C94 / C95 + 17 / 18 * (C95 / C96 + 17 / 18 * (C96 / C97 + 17 / 18 * (C97 / C98 + 17 / 18 * (C98 / C99 + 17 / 18 * (C99 / C100 + 17 / 18 * (C100 / C101 + 17 / 18 * (C101 / C102 + 17 / 18 * (C102 / C103 + 17 / 18 * (C103 / C104 + 17 / 18 * (C104 / C105 + 17 / 18 * (C105 / C106 + 17 / 18 * (C106 / C107 + 17 / 18 * (C107 / C108 + 17 / 18 * (C108 / C109 + 17 / 18 * (C109 / C110 + 17 / 18 * (C110 / C111 + 17 / 18 * (C111 / C112 + 17 / 18 * (C112 / C113 + 17 / 18 * (C113 / C114 + 17 / 18 * (C114 / C115 + 17 / 18 * (C115 / C116 + 17 / 18 * (C116 / C117 + 17 / 18 * (C117 / C118 + 17 / 18 * (C118 / C119 + 17 / 18 * (C119 / C120 + 17 / 18 * (C120 / C121))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) - 120.7444 * (C / C1 + 19 / 21 * (C1 / C2 + 19 / 21 * (C2 / C3 + 19 / 21 * (C3 / C4 + 19 / 21 * (C4 / C5 + 19 / 21 * (C5 / C6 + 19 / 21 * (C6 / C7 + 19 / 21 * (C7 / C8 + 19 / 21 * (C8 / C9 + 19 / 21 * (C9 / C10 + 19 / 21 * (C10 / C11 + 19 / 21 * (C11 / C12 + 19 / 21 * (C12 / C13 + 19 / 21 * (C13 / C14 + 19 / 21 * (C14 / C15 + 19 / 21 * (C15 / C16 + 19 / 21 * (C16 / C17 + 19 / 21 * (C17 / C18 + 19 / 21 * (C18 / C19 + 19 / 21 * (C19 / C20 + 19 / 21 * (C20 / C21 + 19 / 21 * (C21 / C22 + 19 / 21 * (C22 / C23 + 19 / 21 * (C23 / C24 + 19 / 21 * (C24 / C25 + 19 / 21 * (C25 / C26 + 19 / 21 * (C26 / C27 + 19 / 21 * (C27 / C28 + 19 / 21 * (C28 / C29 + 19 / 21 * (C29 / C30 + 19 / 21 * (C30 / C31 + 19 / 21 * (C31 / C32 + 19 / 21 * (C32 / C33 + 19 / 21 * (C33 / C34 + 19 / 21 * (C34 / C35 + 19 / 21 * (C35 / C36 + 19 / 21 * (C36 / C37 + 19 / 21 * (C37 / C38 + 19 / 21 * (C38 / C39 + 19 / 21 * (C39 / C40 + 19 / 21 * (C40 / C41 + 19 / 21 * (C41 / C42 + 19 / 21 * (C42 / C43 + 19 / 21 * (C43 / C44 + 19 / 21 * (C44 / C45 + 19 / 21 * (C45 / C46 + 19 / 21 * (C46 / C47 + 19 / 21 * (C47 / C48 + 19 / 21 * (C48 / C49 + 19 / 21 * (C49 / C50 + 19 / 21 * (C50 / C51 + 19 / 21 * (C51 / C52 + 19 / 21 * (C52 / C53 + 19 / 21 * (C53 / C54 + 19 / 21 * (C54 / C55 + 19 / 21 * (C55 / C56 + 19 / 21 * (C56 / C57 + 19 / 21 * (C57 / C58 + 19 / 21 * (C58 / C59 + 19 / 21 * (C59 / C60 + 19 / 21 * (C60 / C61 + 19 / 21 * (C61 / C62 + 19 / 21 * (C62 / C63 + 19 / 21 * (C63 / C64 + 19 / 21 * (C64 / C65 + 19 / 21 * (C65 / C66 + 19 / 21 * (C66 / C67 + 19 / 21 * (C67 / C68 + 19 / 21 * (C68 / C69 + 19 / 21 * (C69 / C70)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) - 1000
Thanks!
yi
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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That seems to be the formula I wrote for PMO in my Friday, January 17, 2014 10:15:28 AM ET post in the BOP topic.
This formula can be shortened quite a bit in TC2000 v17.
1000 * (XAVG(XAVG(C / C1, 35), 20) - 1)
It is essentially 10 times a 20 period exponential moving average of a 30 period exponential moving average of a 1 period price percent change. This would pretty much use all of the available data in its calculations because of the way exponential moving averages are calculated.
-Bruce
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Registered User
Joined: 6/30/2017
Posts: 1,227
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QUOTE (Bruce_L)
That seems to be the formula I wrote for PMO in my Friday, January 17, 2014 10:15:28 AM ET post in the BOP topic.
Eidetic memory?
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Registered User
Joined: 10/13/2011
Posts: 38
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QUOTE (Bruce_L)
That seems to be the formula I wrote for PMO in my Friday, January 17, 2014 10:15:28 AM ET post in the BOP topic.
This formula can be shortened quite a bit in TC2000 v17.
1000 * (XAVG(XAVG(C / C1, 35), 20) - 1)
It is essentially 10 times a 20 period exponential moving average of a 30 period exponential moving average of a 1 period price percent change. This would pretty much use all of the available data in its calculations because of the way exponential moving averages are calculated.
So if I understand this correctly, this formula compares a stock to some sort of index (NYSE, S&P) over the last 30 bars?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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No, it doesn't compare it to anything. The formula you provided is based entirely on the price action of the symbol to which it is applied.
-Bruce
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Registered User
Joined: 10/13/2011
Posts: 38
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I see. I suppose I can compare the indicator value for a stock to the indicator value on the S&P 500.
The indicator formula you gave me uses the most recent 35 bars correct? Where the 35 after "(C / C1," is the number of bars used?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The 35 is the period of the exponential moving average.
If it were a simple moving average or a front weighted moving average then this would also be the number of bars of pre-calculated C / C1 values being used in its calculation.
Exponential moving averages however are not calculated in such a way that the period corresponds to the number of bars used. EMAs take the previous value of the moving average and multiply it by (period - 1), add it to 2 times the value of whatever is being averaged and divide the result by (period + 1). So theoretically all of the data in the series is used in the calculation (but realistically anything older than about 5 to 6 times the period will change the results significantly enough to be noticable).
-Bruce
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Registered User
Joined: 10/13/2011
Posts: 38
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So given this, and considering the objective of comparing the strength of a stock to a broad index over a period, do you think using the XAVG is more accurate than using a simple average or front weighted?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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I can't give any sort of interpretation advice.
Front weighted and exponential moving averages give more weight to more recent data while a simple moving average gives the same weight to all of the data.
Despite this the exponential and simple moving averages have about the same lag in the mathematical sense as each other.
-Bruce
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Registered User
Joined: 10/13/2011
Posts: 38
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Ok, I'll experiment with them. Thanks Bruce!
Yi
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Registered User
Joined: 9/17/2010
Posts: 484
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From StockCharts:
"Because the PMO is normalized, it can also be used as a relative strength tool. Stocks can thus be ranked by their PMO value as an expression of relative strength."
So a stock with a PMO higher than the PMO of another stock or ETF is performing "better". One could compare a stock's PMO number with the PMO number of SPY, QQQ or VTI,as one saw fit
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Registered User
Joined: 10/13/2011
Posts: 38
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QUOTE (bcochrane)
From StockCharts:
"Because the PMO is normalized, it can also be used as a relative strength tool. Stocks can thus be ranked by their PMO value as an expression of relative strength."
So a stock with a PMO higher than the PMO of another stock or ETF is performing "better". One could compare a stock's PMO number with the PMO number of SPY, QQQ or VTI,as one saw fit
Thank you, that's what I gathered as well!
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