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Hello,
The approach you describe is not RSI neither comparative RS.
RSI is a function of single independent variable (price) while comparative
RS is a function of two independent variables (price of "current" symbol
and price of "base" symbol).
What you descirbe is a function of N-th independent variables.
It is a ranking based on rate of change.
To rank by rate of change you would need to make an exploration:
Filter = 1;
AddColumn( ROC( Close, 260 ), "yearly change" );
set range to last n quotations n = 1.
and click "Explore"
than click on 'yearly change' to sort by yearly rate of change.
If you scan Nasdaq100 the top 10 symbols represent 10% best performing symbols.
Best regards,
Tomasz Janeczko
amibroker.com
----- Original Message -----
From: "mroman59" <mroman59@xxxx>
To: <amibroker@xxxxxxxxxxxxxxx>
Sent: Monday, October 21, 2002 5:51 PM
Subject: [amibroker] Relative Strength vs RSI - AB definition clarification, please?
> According to AB help file, RS by definition is: Calculates relative
> strength of currently selected security compared to "tickername"
> security, using SYNTAX relstrength( "tickername", fixup = 1)
>
> AND
>
> RSI is a technical indicator developed by Welles Wilder to help
> investors gauge the current strength of a stock's price relative to
> its past performance. It compares a stock's highest highs and lowest
> lows over a period of time. RSI is based upon the difference between
> the average of the closing price on up days vs. the average closing
> price on the down days.
>
> Problem:
>
> Many investors use a screening method called relative strength to
> filter out stocks that have a value between 0 and 100 which is not
> considered RSI in my opinion. This filtering is the strength of a
> stock price movement over a set period of time which is relative to
> the price movement to all other stocks in the database. The
> comparison to an index is not the objective, only how well the price
> is moving compared to the price movement of other stocks.
>
> For exmaple: "Filter stocks whose RS is above 85" means screen for
> those stocks whose price movement is in the top 15% of all stocks in
> the database. Again, this is not RSI, because RSI compares a stock
> price to its own past performance and not to that of all stocks. The
> code somehow ranks stocks by percentile (0 to 100) and you
> automatically know which stocks prices are in the top 10% or 15%,
> etc., which ever filter you wish to screen for. The code must include
> the ability to take into account the price within a given period of
> days, for example 1 month, 3 months or 1 year, etc.
>
> At this time I can not find any instructions in AB that would help me
> code and screen for stocks with price movement (or RS) that returns
> all stocks with a selected value (between 0 and 100) which is
> actually a comparison to all other stocks in the database. I have
> used other software applications that performed this function, but
> the code was not available to the user.
>
> Your help is appreciated.
> Thank You
>
>
>
>
>
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>
>
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