Eric,
DWA updates their relative strength charts every Tuesday.
With regard to 'Tuesday' R/S P&F charts:
In his book on P&F charting, Michael Burke says Chartcraft uses the Thursday quotes to make their R/S charts. I have not checked to see if they have changed their methodology.
Cohen, in his book on 3 Box-Reversal P&F charting, just says to use one day during a week. He said this, in my opinion, for one basic reason. This was the sheer work involved, at that time, in manually calculating the R/S values for an issue to then hand charting an R/S P&F chart. And at that time, picking a 'standard' day's data for the DJIA probably gave you a good 'view' of the markets condition due to the much lower volatility that existed before the era of computers and instantaneous electronic communications.
I feel that taking a 'weekly' view of R/S will 'filter' some of the daily turmoil out of the resultant P&F chart, but that you should use the weekly high and the weekly low if you are planning to make a High/Low based weekly R/S P&F chart.
Your charts take the daily data and go from there.
Well, that's not quite correct. EZ-PnF creates P&F charts from the data that you tell it to use eg if you have weekly data, EZ-PnF will make weekly charts, if you have monthly data, EZ-PnF will make monthly charts.
If you have hourly or minute or second based price data in an ASCII/Text CSV format that EZ-PnF can read, you can create intraday charts. They will not be labeled with the hours or minutes, but the chart pattern will be correct.
Now, with regard to the R/S charts, the REGISTERED version of EZ-PnF will 'match' the dates of the two sets of price data and only use the 'matched price pairs' to make an R/S chart. So, if one of the price data files is a daily set and the other price data file is a daily or weekly or monthly set, you will get a daily or weekly or monthly R/S chart, with only the 'matching' dates used.
One way to create 'weekly' P&F charts with weekly high/low prices used is to download the R/S 'basis' (the issue that will be used as a comparison basis, eg DJIA, SP500, SPX, etc.) from Yahoo! Finance, specifying 'WEEKLY' as the data option.
To do this:
1)Follow the links to 'FREE HISTORIC DATA' from the EZ-PnF home page ez-pnf.com This will take you to a page that explains how to do the download and a link to the proper Yahoo! page. If you need a more detailed procedure in the use of Yahoo! data, email me at support@ez-pnf.com and I will send you one.
2)With the REGISTERED version EZ-PnF set to use Yahoo! CSV format data, select the R/S 'basis' issue you wish to use, specifying the symbol of the issue you downloaded from Yahoo!.
3)If your main/daily issue price data is from any other source eg TC2000, MetaStock, FastTrack, etc., use the EZ-PnF 'settings' to point EZ-PnF back to your normal data.
4)You are now set to make 'weekly' R/S charts using your normal price database compared to a 'weekly' data set downloaded from Yahoo!.
And this you can do today with no code changes.
NOTE:- you are not restricted to using Yahoo! data as the source for a R/S 'basis'. Any format that the REGISTERED version of EZ-PnF can read/use can be selected as a 'basis' eg TC2000, ChartPro, ASCII/Text CSV exported from a spreadsheet, etc. and it does not have to be the same source as the price database you use normally for making P&F charts.
I know this is long, but I hope that it offers some insights.
Ben A. |
