Where can I find the value of "relative strength" of a stock?
- Thread starter WmWaster
- Start date
It is relative, but I use this http://www.trade-ideas.com/StockInfo/200_day_percent_winners.html
Both stocktables.com and IBD rank stocks according to their relative strength.
- Spydertrader
Quote from bitrend:
Wow, very impressive! All stocks are strong there. What I want to know is the strongest stocks after I bought them, not before I buy them.
In that case look at the list of bottom stocks as ranked by relative strength or the list of stocks near 52 week low.
Of course research must be done to determine sound fundamentals and good balance sheet. If stocks are sound but nobody wants them at this time then there are probably some future winners among them.
Quote from roger77:
In that case look at the list of bottom stocks as ranked by relative strength or the list of stocks near 52 week low.
Of course research must be done to determine sound fundamentals and good balance sheet. If stocks are sound but nobody wants them at this time then there are probably some future winners among them.
Yes, fundamentally good stocks will always climb in the long run (unless their condition change), but who knows when they will be climbing.
Put them on watchlist first.
what is the mathmatical formula to calculate relative strength to an index?
If you are looking for Relative strength ranking as popularized by IBD then the formula is
0.4 * (C * 100 / C65) + 0.2 * (C * 100 / C130) + 0.2 * (C * 100 / C195) + 0.2 * (C * 100 / C260)
Where c= current price.
Once you get the value you can rank stocks to find the top ranking.
It is basically a weighted average of 13, 26 and 52 week price change.
The objective of such ranking is to compare how a stock, industry or sector is trading, over a period of time, when compared against other stocks, industries or sectors or indexes.
So 99 ranking means the stock is outperforming 99% of the stocks in given universe.