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technical_indicators:price_relative [2023/09/01 19:56] jayanthi [Introduction] |
technical_indicators:price_relative [2023/09/01 19:58] jayanthi [Calculation] |
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| **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. | ||
| - | ===== Calculation ===== | + | ===== How To Calculate the Price Relative Indicator ===== |
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| {{:technical_indicators:price_relative:cs-pricerelative.xls?linkonly|Click here to download this spreadsheet example.}} | {{:technical_indicators:price_relative:cs-pricerelative.xls?linkonly|Click here to download this spreadsheet example.}} | ||
| - | The table above shows the Starbucks/S&P 500 Price Relative. The first value in row two is .0256 (30.66/1197.75). This ratio increases when Starbucks advances more than the S&P 500 or declines less than the S&P 500. This ratio decreases when Starbucks advances less than the S&P 500 or declines more than the S&P 500. For reference, the table also shows the percentage change in Starbucks and the S&P 500. The percentage change in Starbucks less the percentage change in the S&P 500 is also equal to the daily changes in the Price Relative. In row two, notice that Starbucks was down 2.66% and the S&P 500 was down 1.62%. The Price Relative moved lower (-1.04%) because Starbucks declined more than the S&P 500. Row three shows the Price Relative rising because Starbucks (+.50%) was up more than the S&P 500 (+.02%). The chart below shows the Price Relative in action. | + | The table above shows the Starbucks/S&P 500 Price Relative. The first value in row two is 0.0256 (30.66/1197.75). This ratio increases when Starbucks advances more than the S&P 500 or declines less than the S&P 500. This ratio decreases when Starbucks advances less than the S&P 500 or declines more than the S&P 500. For reference, the table also shows the percentage change in Starbucks and the S&P 500. The percentage change in Starbucks less the percentage change in the S&P 500 is also equal to the daily changes in the Price Relative. In row two, notice that Starbucks was down 2.66% and the S&P 500 was down 1.62%. The Price Relative moved lower (-1.04%) because Starbucks declined more than the S&P 500. Row three shows the Price Relative rising because Starbucks (+0.50%) was up more than the S&P 500 (+.02%). The chart below shows the Price Relative in action. |
| {{:technical_indicators:price_relative:prel-1-sbuxexam.png|Price Relative - Chart 1}} | {{:technical_indicators:price_relative:prel-1-sbuxexam.png|Price Relative - Chart 1}} | ||