RSC
Printed From: BullCharts Forum
Category: BullCharts
Forum Name: BullCharts discussion
Forum Discription: General discussion about getting started with BullCharts and exploring its features.
URL: http://www.bullcharts.com.au/forum/forum_posts.asp?TID=84
Printed Date: 11 Apr 2025 at 3:58am
Software Version: Web Wiz Forums 9.69 - http://www.webwizforums.com
Topic: RSC
Posted By: Decan_Frost
Subject: RSC
Date Posted: 22 Dec 2004 at 1:58pm
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This i,m led to believe is a comparison used manily for say the comparing a stock against it,s sector. Am i right in reading somewhere on this site that Bullcharts has had a flaw in relation to RSC,which is being currently worked on. As the chart i view via INSERT ,SECURITY,RSC ticked (compared to XHJ HEALTH),does not appear correct. This my fellow chartists is quite probably,and statistically,highly possibly my wrong viewing but can someone please explain!. |
Replies:
Posted By: Peter
Date Posted: 23 Dec 2004 at 11:25am
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Yes, the RSC is used for this purpose. The RSC is currently unavailable in BullScan or BullScript. However, as far as we know, the RSC for charts works fine. Which security were you comparing to XHJ? (and what about the result suggests to you that it may be incorrect). Note: A common mistake people make with the RSC is to not look at the axis. For example, if you set up an RSC comparing the XAO and the XJO then you'd expect the two to be very similar. At first glance the RSC graph appears to be very noisy. However, when you look at the scale, the values are between 0.98 and 1.005 - so it is actually quite flat, but the auto-scaling stretches the tiny bumps out to being quite large. Is it possible that you're observing a similar effect with your comparison? |
Posted By: davkell
Date Posted: 24 Dec 2004 at 1:08pm
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Peter; Is it possible to have the ability to put in the zero line on the RSC? Also, I haven't got the complete understanding of this tool yet, but the version on BullCharts appears a little different to that of the RSC as outlined in Weinstein's book. His axis values appear to go from zero up or down in increments of five (5). Is this just a manipulation of the axis for better viewing or something else? Am I right in the understanding that if the RSC is above zero and rising, then the stock price is performing better than the index, and if the RSC is below zero and falling, it is performing worse than the index?
------------- "Trade Your Way To Financial Freedom." |
Posted By: Decan_Frost
Date Posted: 27 Dec 2004 at 10:43pm
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Thanx Peter,found scale on left and now makes better sense. VCR was my comparing. So does it mean that an overlay of the sector on a chart can move down while the RSC moves up,as this is a reflection to how well the share ,security is doing compared to sector. Thanx ! |
Posted By: Peter
Date Posted: 04 Jan 2005 at 10:22am
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davkell, Our relative strength comparison is calculated by dividing the price of one security by another. This means that the point where both prices are equal is at 1, not zero. This is the method described in Technical Analysis from A to Z by Steve Achelis.The easiest way to add a line is with the horizontal line tool. My Weinstein book seems to have walked for the moment, so I can't comment on whether or not he maybe uses a different RSC method. Deakan, Yes, that's correct.  |