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Monday, September 2, 2013

Using The Relative Strength Score Spreadsheet

 I recently made some big changes to the price relative scan, coming up with a way to combine the 3 scans I do to create something I called the "total relative strength score". I have a spreadsheet where that score is calculated on Google docs: it is downloadable and updated every weekend. To download it, get to it with this link:

The spreadsheet is usable online, but it will be far better to download it and work with it locally. To download it, simply click on the "File" menu, go down to where is says ":download as", and it will give you a choice of format to download it in, depending on which spreadsheet software to use. The most common format will be ".xls", which is Excel format and readable by any spreadsheet program that I am familiar with. You want to download it in spreadsheet format rather than text format to preserve the formulas on page 2.

Page 1 of the spreadsheet contains raw data for the formulas on page 2 and by itself is not much use. The first 4 columns are from the price relative scores that I calculate on a weekly basis; the next two columns are from the breakouts spreadsheet that I update daily, and the last two are from the long term relative strength data that I calculate on the weekends.

Here is page two, this is where the searches and calculations are done. Input the ticker symbol in column A, columns B through  E are where the formulas are for searching the data on page 1, and column F is where the total is calculated. I have the formulas for 100 stocks on this page, limiting it to keep the spreadsheet size small, but you can do as many stocks as you want simply by copying and pasting the formulas. When done, save this page as a text file (".csv") which will give you a single page of sortable results.The columns are "RS", which is the old price relative score, "Diff" is the difference between this week's score and last week's,
"Momentum" is short term strength, and "200 d" is long term strength.

Page 3 is the old price relative score data: since I still use it to calculate the total relative strength score, I included it in this spreadsheet. Feel free to do modifications to this spreadsheet; if there is something that looks wrong to you, let me know. I am not a math whiz (anything more complicated than algebra makes my head spin), so I tried to keep this pretty simple. It is roughly analogous to the IBD RS rating, in that stocks in the top 10% of scores here will very likely have an RS score of 90 or higher. The difference is that this method is open while IBD's is cloaked in secrecy, so you can evaluate my method while you have to blindly trust theirs. 

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