RS measures the strngth between two listed items (ie, SPY vrs EEM). Let's say I want to rotate between the SPY and the EEM based upon RS. Is there any way to have the RS indicator set up so that I can make a determination when to perform this rotation?

Let us say have a RS indicator plotting SPY vs EEM. If so, then the RS indicator will move up when SPY is outperfoming EEM and move down when SPY is underperforming EEM.

If you are interested in returning a number representing how much SPY has under or outperformed EEM over a specific period of time, you could add a Rate of Change Percent indicator to the chart. You could then click on the Rate of Change % indicator and select Change Data Source to use the Relative Strength indicator instead of price as the basis for the Rate of Change % indicator.

Change Data Source (3:38)

You will not be able to create conditions based on the Relative Strength (RS) indicator or any of its child indicators (such as a Rate of Change % of the RS indicator). So while you could visually look at the chart to determine if you want to switch positions, there is no way to create conditions to do so automatically.

So then, would the "crossing" of the ROC % line and the RS line be the "indication" of when to make a rotation? 

The trainers can't give setting, interpretation or investment advice. With that in mind, I can tell you that the cross of the ROC % and RS lines are generally going to be meaningless as they are usually plotted on different scales.

The ROC % indicator is just a different way to interpret the RS line.

If you have a RS SPY vs EEM, then the RS indicator will move up when SPY is outperfoming EEM and move down when SPY is underperforming EEM.

A ROC % indicator applied to that RS indicator will be above zero when SPY is outperforming EEM over the period of the ROC % indicator and will be below zero when SPY is underperforming EEM over the period of the ROC % indicator.

This was what I was trying to ask. Thanks

 ROC % indicator applied to that RS indicator will be above zero when SPY is outperforming EEM over the period of the ROC % indicator and will be below zero when SPY is underperforming EEM over the period of the ROC % indicator.

One last question related to the RS. I have aprogram currently, that I pay a lot for, that ranks the broad asset classes against one another. So, it uses Domestic, International, Fixed Income, Commodities and Currencies.  I am not interested in using commodities in this discussion, so we can exclude them. Is there a way measure the relative strength and the ROC% so that I could determine which broad asset area is strongest and which one would come in 2nd, 3rd, etc?

Let's say I used the SPY as my base. If I measure EFA, EEM, a bond index, cash or any other representative against the SPY, then I can get a measure for that broad class against domestic large equities.  We'll give it a pass or fail for the ROC% above the ZERO line. We can do the same thing for the other broad aeas by changing the RS base (ie, SPY to EEM and then comparing RS of the listed areas against the EEM).

Would I basically change the base of the RS indicator and then count how many broad classes pass or fail for each base? Here is an example. I could use SPY against the EEM. SPY will pass as a stronger RS and be above my stated ROC% ZERO line. The same would occur if I compared SPY against the other stated asset classes. So, domestic equity (SPY) would pass with a 4 (four) since it is stronger than the other areas. I would then do the same thing with the next asset class.

Does this sound correct or am I missing something in the thought process? If this is correct, then I can easily measure the RS and categorize the appropriate areas for allocation overweight.

Let us say you have 10 symbols you are using for broad categories along with SPY as your base. There would be no way to count the number of symbols which had outperformed SPY over the period of the ROC % indicator and plot it on the chart.

That said, you probably can find the information you want for the current bar. You would start by creating a Personal WatchList containing all 11 symbols (your 10 category symbols and SPY).

You would then add a ROC % indicator with the same settings as your other ROC % indicator to the chart which is just based on price (no fancy Change Data Source to use the Relative Strength as the basis of the ROC % indicator required).

Click on the ROC % indicator which is based on price and select Add Column to WatchList. This will allow you to use the WatchList Column as a sort.

If you click on the SPY symbol in the list, it will say "X of Y Items in WatchList" at the bottom of the WatchList. As an example, let's pretend it says "4 of 11 Items in WatchList". This would mean there are 3 items higher in the list and 7 items lower in the list.

Sorting with Indicators (3:40)