Chapter 9. Relative Price Strength Selection
The most reliable technique for selecting stocks is relative price strength. There are many ways of calculating relative price strength and some are publicly available. Most of the popular data suppliers use their own proprietary method and refuse to divulge the calculation details. Investors’ Business Daily is one that comes to mind. On the other hand, Value Line published its calculation of relative price strength as “dividing the stock’s latest ten-week average relative price by its 52-week average relative price.” You are better off locating a data supplier that will calculate relative price strength as outlined here or purchase raw data and calculate the ratios and rankings yourself. The tests ...
Get Beat the Market: Invest by Knowing What Stocks to Buy and What Stocks to Sell now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
