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RSL: Relative Strength (Levy)

Posted: 18 Feb 2019 16:09
by WHS Support
Dear Trader,

the concept of relative strength according to Levy is based on the assumption that securities which exhibited a large relative strength in the past will also develop relatively strongly in future, and vice-versa. Here it is not the relative strengths of several instruments which are compared with each other, but the performance of the past with the performance of today. The formula is fairly simple:

RSL = C / MA

where c = close price and MA = Moving Average.

The attached indicator can be combined with LiveTables and Screeners in order to screen for the strongest instruments:

rsl.png

Kind regards,
Timo
WH SELFINVEST