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technical_indicators:price_relative [2019/09/07 00:09] betseyp |
technical_indicators:price_relative [2023/09/01 19:56] jayanthi [Introduction] |
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| ====== Price Relative / Relative Strength ====== | ====== Price Relative / Relative Strength ====== | ||
| - | ===== Introduction ===== | + | ===== What Is the Price Relative Indicator? ===== |
| - | The Price Relative indicator compares the performance of one security to another with a ratio chart. This indicator is also known as the Relative Strength indicator or Relative Strength Comparative. Often, the Price Relative indicator is used to compare the performance of a stock against a benchmark index, such as the S&P 500. Chartists can also use the Price Relative to compare the performance of a stock to its sector or industry group. This makes it possible to determine if a stock is leading or lagging its peers. The Price Relative indicator can also be used to find stocks that are holding up better during a broad market decline or showing weakness during a broad market advance. | + | Also known as the Relative Strength indicator or Relative Strength Comparative, the Price relative indicator uses a ratio chart to compare the performance of one security to another. |
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| + | The indicator is often used to do the following: | ||
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| + | * Gauge a stock's performance against a benchmark index, such as the S&P 500. | ||
| + | * Asses a stock's performance relative to its sector or industry group, so you can determine if a stock is outperforming or underperforming its peers. | ||
| + | * Identify stocks that either hold up well during broad stock market declines or exhibit weakness during market upswings. | ||
| **Note:** At StockCharts.com, a **ratio ticker symbol** is used to create a Price Relative indicator. A ratio symbol consists of two ticker symbols joined together with a colon character (e.g., "IBM:$SPX", "$INDU:$GOLD"). The value of a ratio ticker symbol is equal to the close of the first symbol divided by the close of the second symbol. | **Note:** At StockCharts.com, a **ratio ticker symbol** is used to create a Price Relative indicator. A ratio symbol consists of two ticker symbols joined together with a colon character (e.g., "IBM:$SPX", "$INDU:$GOLD"). The value of a ratio ticker symbol is equal to the close of the first symbol divided by the close of the second symbol. | ||
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| ===== Using with SharpCharts ===== | ===== Using with SharpCharts ===== | ||
| - | The Price Relative is available in SharpCharts by using the "Price" indicator with [[https://stockcharts.com/docs/doku.php?id=data#ratio_symbols_relative_strength|a "Ratio" ticker symbol]] (e.g., "IBM:$SPX"). First, select the "Price" indicator. Second, in the parameter box, enter the symbol for the base security followed by a colon (":") and then the symbol for the comparative security. | + | The Price Relative is available in SharpCharts by using the "Price" indicator with [[https://support.stockcharts.com/doku.php?id=data#ratio_symbols_relative_strength|a "Ratio" ticker symbol]] (e.g., "IBM:$SPX"). First, select the "Price" indicator. Second, in the parameter box, enter the symbol for the base security followed by a colon (":") and then the symbol for the comparative security. |
| Note that you can also use the "$SECTOR" and "$INDUSTRY" pseudo-symbols inside a ratio symbol. We will automatically replace those symbols with the appropriate sector or industry ETF/index. For example, "IBM:$SECTOR" is the same as "IBM:XLK" inside of a SharpChart. | Note that you can also use the "$SECTOR" and "$INDUSTRY" pseudo-symbols inside a ratio symbol. We will automatically replace those symbols with the appropriate sector or industry ETF/index. For example, "IBM:$SECTOR" is the same as "IBM:XLK" inside of a SharpChart. | ||
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| {{:technical_indicators:price_relative:prel-6-shch.png|Price Relative - SharpCharts}} | {{:technical_indicators:price_relative:prel-6-shch.png|Price Relative - SharpCharts}} | ||
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| ===== Further Study ===== | ===== Further Study ===== | ||