The Investigator Advantage

Relative Strength

Relative Strength is a concept created by William J. O’Neil of Investor’s Business Daily. It compares all the financial instruments in a database to see which issues are rising or declining at a faster rate compared with the other financial instruments in the database. The instruments that are rising the fastest are given a value of 99, while the instruments that are declining the fastest are given a value of 1. Investor’s Business Daily generates these values over a one year period. (Approximately 250 trading days.) Investigator allows you to generate these values over multiple time periods. The most popular periods are 25 and 250 days. Unlike Investor’s Business Daily, Investigator also allows you to see the percent change the instrument made over the period. You can use both the Relative Strength value and the percent change value in testing.

Click Next to see the next Relative Strength dialog box.