Tips and Tricks: Working with sector indices

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Working with sector indices

Printed From: BullCharts Forum
Category: BullCharts
Forum Name: Tips and Tricks
Forum Discription: Tips on how to use BullCharts more effectively.
URL: http://www.bullcharts.com.au/forum/forum_posts.asp?TID=217
Printed Date: 19 May 2024 at 11:30am
Software Version: Web Wiz Forums 9.69 - http://www.webwizforums.com

Topic: Working with sector indices

Posted By: Peter
Subject: Working with sector indices
Date Posted: 27 May 2005 at 2:51pm

The relative strength comparison indicator is a useful tool for determining how well one security is performing when compared to the market, or to another security.

A common request is to want to use the RSC to compare a company to the index of its own sector. Normally this would require you to manually enter the sector index code into RSC for each security.

By using the Security.SectorIndex variable, we can modify the RSC indicator script to automatically select the correct index. Follow these steps:

Open the indicator window and select the builder tab
Locate the "Relative Strength Comparison" indicator and select copy.
Find the line: symb := inputsymbol("Compare to", "XAO"); and change it to symb := Security.SectorIndex;
Save the indicator and add it to your chart

This new indicator will automatically display the RSC comparing the company to the index of that companies sector. The Security.SectorIndex returns the ASX code of the relevant index.

By using similar techniques, you could also make it just display the index (instead of the RSC). You can also use this new indicator in a scan to find companies that are out performing their sector.

Replies:

Posted By: pipsqueek
Date Posted: 27 May 2005 at 10:18pm

Thanks Peter

This works well and will be very useful

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failing to plan is planning to fail.