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Jim Dean

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Joined: 9/21/2006
Location: L'ville, GA

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Subject : RE: DSS & RS
Posted : 11/21/2013 11:34 AM
Post #29157 - In reply to #29155

Here is a valid way to calc Normalized RS of a symbol X vs another symbol Y over a time window of Pds bars - X and Y are the closing prices of their respective symbols:

( (X - X[Pds] ) / X[Pds]
/
((Y - Y[Pds] ) / Y[Pds] )
) * 100
… but the calc must have a provision in it to prevent divide by zero if Y = Y[Pds]

Another way to normalize it, which is not as helpful but which avoids divide by zero checking:

( X/Y - X[Pds]/Y[Pds] ) / (X[Pds]/Y[Pds) * 100


Barry, which of these does RS use within DSS?

If neither, could you please tell us the specific formula, like I just did?

Thanks.

[Edited by Jim Dean on 11/21/2013 11:38 AM]

Deleting message 29157 : RE: DSS & RS


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