Relative Strength

Discussion in 'Technical Analysis' started by maninjapan, Jul 23, 2009.

  1. I have a quick question about calculating relative strength across the sectors.
    Lets say Industrial was up 5% over a period, Tech was up 10% and SPY was up 7% over the same period. Would the relative strength % be for Industrial and Tech (SPY being the base line)

    -2% and 3%?

    Or would I need to calculate using the prices and then calculate the % at the end?
  2. No replies to your good post?

    If you need numbers then I might suggest you use the price differences for the same period and then calculate the %'s.

    You can of course just use a good old chart to show you the diff.
  3. A RS chart that compared Ind to the SPY would be reduced by .0186 and the Tech to Spy would be increased by .028. So you are correct.

    I keep a numer of RS charts: SML/SPY, MID/SPY, SML/MID, RPV/RPG etc. Make a 200 and 50 dma of the RS line and when the 50 crosses the 200 it's very telling.
  4. Sorry, guys, I had kinda given up on getting any replies. Thanks fort he replies guys. Ill definately look further into those setups.