https://www.stockopedia.com/ratios/relative-strength-6-months-769/
What is the definition of RS 6m?
6 month Relative Strength measures a stock's price change over the last 6 months relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.
It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%
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In Telechart this can be done easily using Price Percent Change 26-Week which is a System sort criteria. The Telechart pcf for it is: 100*(c-c126)/c12The easy way to calculate relative strength is by calculating 6 month price change and ranking ETF by it. In Telechart this can be done easily using Price Percent Change 26-Week which is a System sort criteria. The Telechart pcf for it is: 100*(c-c126)/c126.
Another better way to rank ETF by 6 month relative strength is by calculating ROC as a ratio of price to six month average price. The advantage of this approach is it uses average price of last 6 month as against a one price point of six month ago price in earlier ROC calculation. In Telechart this is easy to do using a PCF like c/avgc126.6.
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