|
Jon Roberts
Posts: 13
Joined: 12/23/2007
Location: Oklahoma City, OK
 User Profile |
I have a question about the parameters for the Relative Strength Indicator (RS).
According to Indicators and Systems Help, the RS has two parameters, such as RS($SPX,7).
When I try to use the RS function in a custom scan, the indicator needs three parameters, such as RS(7,"$SPX",1).
I presume the "7" is a moving average of the ratio between the stock's close and the index ($SPX in the examples), but I'm not at all clear what the "1" is for when building a custom scan.
Also, when plotting the RS or building a custom scan, my assumption is that I can use any stock symbol (e.g. GLD if I wanted to to a relative strength against GLD) or am I limited to only comparing against an index?
Thank you for your consideration.
Jon
|
|
Barry Cohen
Posts: 6338
Joined: 1/19/2004
User Profile |
The first parameter is the periods, the second is the reference symbol, while the third is the unit. You would get the same parameters if you plotted the RS Indicator on your charts. The reference symbol can be any valid symbol.
|
|
Jon Roberts
Posts: 13
Joined: 12/23/2007
Location: Oklahoma City, OK
User Profile |
Thanks, Barry. I appreciate your input. One more question. You said the last parameter is the unit. What unit does "1" represent, and what are the other choices?
Thanks again!
|
|
Barry Cohen
Posts: 6338
Joined: 1/19/2004
User Profile |
Unit refers to Price or Return. If it is set to 1 then you're referencing Price. To set it to Return set the Unit to 2 instead. Try plotting the RS on your chart. Right-click the chart & select Add Indicator -> Relative Strength. You will see the option there as well.
|
|
Jon Roberts
Posts: 13
Joined: 12/23/2007
Location: Oklahoma City, OK
User Profile |
Thanks Barry. I appreciate the quick responses!
|