Registered User
Joined: 10/7/2004
Posts: 24
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IBD ranks their Industry Groups on a six week time frame. When I Scan the Morning Star Industry Groups in Telechart for the same six week period I come up with a different list of top performers. Can you explain to me why there is a difference and what the difference is? Another question is, which one is right? (One difference is that IBD has 197 Industry groups as opposed to 239 in Morning Star. Still one would expect to come up with, at least, the same top performers even if they are named differently)
Thank You
Tristram
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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IBD does some non-standard stuff in some of their calculations. For example in answering forum questions, it has come to my attention that one of their "Relative Strength" Scans actually seems to be a Ranking of something very similar to the following:
40 * C / C63 + 20 * C / C126 + 20 * C / C189 + 20 * C / C252 - 100
I don't know if that is the case here or not. That said, when dealing with Industry Groups instead of Stocks, even if everything else is the same, the composition of individual Industries and the weighting of the components within those Industry groups is going to make a big difference in how the Industry Groups rank against each other even if the formulas being compared are identical.
-Bruce
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