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                                                   Stock or industry relative strenght : Indicator or composite ?


Vincent Prat
2010-08-27 23:29:10

I would like to create and use an indicator or a composite in order to display a stock relative strength (not the RSI).
Relative strenght is use to show the performance of a stock versus tha market.
the simplest way to calculate it is to divide the closing price of a stock by the closing price of an index
ex : google / S&P 500
but i dont know if the best way to do it is to :
- create an indicator
- create a composite ( i've tride the composite way but i dont see how to divide, there is the sum function but no divison)

i think the better way to use is to create a composite because the relative strenght line could be used by indicators in order to filter the signal.

Is there anyone who can help me?

2010-08-28 10:18:05


Best Answer
There is no need to create a composite. Just use the GetSeries function to retrieve another symbol data.

RS = close / GetSeries("^GSPC", close);
plot(RS, "RS");

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