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Relative Strength (Chartmill)

At Chartmill we assign a Relative Strength number to each stock in our database. The relative strength number of a stock (=CRS) indicates how well the stock has been performing over the last year compared to all other stocks in our database. The maximum number is 100, the minimum number is 0. When a stock has relative strength number 100, it means that it outperformed all other stocks in the database. When the value would be 90, it means that this stock outperformed 90% of all other stocks.

We calculate this number by looking at the performance of each stock over the last year, but we put more weight on the most recent performance by adding the performance of the last quarter. After calculating the absolute performance for each stock, we will rank all stocks according to the above metric. After ranking them, we can assign a value between 0 and 100 for each stock. The stock with the highest value for the metric will get value 100 because it outperforms all other stocks ( = 100% ) in our database. The second one only outperforms 7999 of 8000 stocks, so it will get a Relative Strength number of 99.99.

Hunting for stocks with high relative strength

On the ‘More Technical’ tab, you can select the ‘Relative Strength’ filter and choose to view only stocks with a minimum or maximum Relative Strength (MRS)’ number. This will show you only the strongest or weakest stocks in the entire database.

CM_Relative_Strength_Screen

We also allow sorting by Relative Strength for each filter or combination of filters you select. This allows for instance to rank all ETFs or all Euronext stocks according to Relative Strength.

CM_Relative_Strength_Screen