This variant of Relative Strength was used in the book “Secrets For Profiting in Bull and Bear Markets’ by Stan Weinstein. Weinstein was using the indicator mainly on weekly charts.
The indicator can be plotted on the stock charts by selecting it from the indicators. An example is shown below:
The formula of this indicator is a bit more complicated than the regular Dorsey RS, but it is worth the read:
RSM = (( RSD(today) /sma(RSD(today), n)) - 1 ) * 100
As with the regular ( Dorsey ) RS, you can use Mansfield RS to examine if a stock performs better than the market. Only the rising or declining of the indicator matters for this.
Stan Weinstein used the indicator only on weekly charts with 52 as the parameter value for n. He insisted that break outs out of a base had to go together with rising relative strength. The Mansfield RS needs to be rising an close to or above 0.
This indicator has the advantage over the Dorsey RS that the values are below or above the 0 line. This allows us to screen for stocks with a MRS value above 0. When we see that the MRS is far above 0 and has been above 0 for some time, we have found a stock that outperforms the market heavily. We can buy this kind of stock when dips occur.
This screen is a modification of the weekly ChartMill Channel breakout screen, which adds the criteria of a rising Mansfield Relative Strength.