Many investors believe that you should not go long on a stock unless it has a Relative Strength value above 90. Investigator not only lets you test this theory, but also allows you to see if the percent change value is significant. You can also include multiple databases in testing, as well as compare different period Relative Strength values.
The first dialog box you see will have a list of all the Relative Strength databases that you have generated in the Number Of Days list box. For example, if you have generated a 25 and 250 day database, both these numbers will appear in the Number Of Days list box. If you have generated only a 250 day database, just the number 250 will appear in the Number Of Days list box.
This is an Add Conditions dialog box.
There are two conditions you can test for in the dialog box: value and percent.
To check for value, first select the database you wish to use. Next, make sure the Value Above: selection is checked. Enter the above and below values for the test. For example, let’s say that you want the Relative Strength value to be above 80, but below 90. You would enter 80 in the Value Above: edit box and 90 in the And Below: edit box. Next select the number of periods that you want the value to be in this range. For example, if you want the Relative Strength value to be between 80 and 90 for the past 4 weeks, you would enter 4 in the Periods dialog box. (This example assumes you’ve generated Relative Strength values every Friday. If you’ve generated them every day, the last 4 periods would be days, not weeks.) Finally, click the Add Condition button. The condition appears on the conditions list on the right hand side of the dialog box.
To check for percent, first select the database you wish to use. Next, make sure the Percent Above: selection is checked. Enter the above and below values for the test. For example, let’s say that you want the Relative Strength percent to be above 5 percent, but below 10 percent. You would enter 5 in the Percent Above: edit box and 10 in the And Below: edit box. Next select the number of periods that you want the percent to be in this range. For example, if you want the Relative Strength percent to be between 5 and 10 percent for the past 5 weeks, you would enter 5 in the Periods dialog box. (This example assumes you’ve generated Relative Strength values every Friday. If you’ve generated them every day, the last 5 periods would be days, not weeks.) Finally, click the Add Condition button. The condition appears on the conditions list on the right hand side of the dialog box.
If you have generated more than one Relative Strength database, this dialog box will have a Next button on it. If you click the Next button, a second Relative Strength testing dialog box appears.
This is an Add Conditions dialog box.
This dialog box allows you to compare values and percents from different Relative Strength databases. For example, assume you’ve generated a 25 and a 250 day Relative Strength database, and you want to check if the 25 day Relative Strength value is greater than the 250 day Relative Strength value for a particular date. You would select 25 in the top Day list box, check the Value selection, and select 250 in the bottom Day list box. You would then enter the For: periods value (see above) and click on the Add condition button. The condition appears on the conditions list on the right hand side of the dialog box.
If you want to check if the 25 day Relative Strength percent is greater than the 250 day Relative Strength percent for a particular date, you would select 25 in the top Day list box, check the Percent selection, and select 250 in the bottom Day list box. You would then enter the For: periods value (see above) and click on the Add condition button. The condition appears on the conditions list on the right hand side of the dialog box.
At any time, you can go back to the first dialog box by clicking on the Back button.
When you are done entering your conditions, click OK.
Note: During testing, Investigator will use the last generated Relative Strength date it finds just before the testing date. For example, let’s say that during historical testing, Investigator wants to test a Relative Strength value for December 4, 1996. If you generated RS values on November 29, 1996, this database lookup value would be used; however, if you last generated RS values on June 7, 1996, this database lookup value would be used, so you can see it pays to update your values weekly for accurate test results.