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To: tyc:> who wrote (32)3/2/2007 12:57:44 AM
From: E. Charters  Read Replies (1) | Respond to of 103
 
You have to know that it is yzc/mmg and you don't know which way which is going do you? If mmg is getting weaker, then it is same thing as yzc getting stronger.

So what does that mean? half the time an increase in strength it is one stock going down and the other half it is the other stock going up. I suppose it is useful if they are both going the same direction, then it is flatlining....

So what would be better? You want to know when one is getting stronger at the expense of the other by its direction.. don't you..?

or compare their direction by colour where when one stock moved up relative to the other, the relative strengh line it would be one colour, and vice versa, another colour..

It might be better to normalize the graph of one stock by comparing their means, and multiplying the price of the one's stock values by that means comparison factor, and graphing the resulting two lines.

Or at least plot one stock against the relative strength chart so you can see where the relative strengh comes from.. a positive move for instance of the graphed stock versus some other movement of the other no graphed..