Reason why Relative Strength is important to filter businesses:-
Filtered Cyient using RS vs IT Index
Relatives strength simply means relative stronger than the benchmark or the sectoral index.
Simple way to use Relative strength:-
Go To trading View
Click on Indicators
Search for: Relative strength
Click on Relatives strength of a stock by Bharat Trader
The moment it opens- you can change the benchmark to Nifty IT or whatever company you are looking at with respect to index.
Secondly, you can compare it to Nifty as well :)
Few more important points:-
If you are using weekly charts, then you can use Period as 52. It will compare RS with last 52 weeks.
If you are using Monthly Charts, put Period as 12.
If you are using Daily charts, put period as 123 (6month of trading days)
Hopefully this helps!
Video on Cyient sometime ago:- (Valuations have expanded since then)
youtube.com
Disc: no reco to buy or sell. Live case study on filtering stocks.
Filtered Cyient using RS vs IT Index
Relatives strength simply means relative stronger than the benchmark or the sectoral index.
Simple way to use Relative strength:-
Go To trading View
Click on Indicators
Search for: Relative strength
Click on Relatives strength of a stock by Bharat Trader
The moment it opens- you can change the benchmark to Nifty IT or whatever company you are looking at with respect to index.
Secondly, you can compare it to Nifty as well :)
Few more important points:-
If you are using weekly charts, then you can use Period as 52. It will compare RS with last 52 weeks.
If you are using Monthly Charts, put Period as 12.
If you are using Daily charts, put period as 123 (6month of trading days)
Hopefully this helps!
Video on Cyient sometime ago:- (Valuations have expanded since then)
youtube.com
Disc: no reco to buy or sell. Live case study on filtering stocks.
Ways to find RS SCANS:-
Stock edge
Market Smith India
Trading view scans
Trendlyne
Stock edge
Market Smith India
Trading view scans
Trendlyne
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