Tracking Relative Strength In Four Dimensions by James Garofallou, PhD
Relative strength has more information embedded within it than meets the eye. Here is a way to identify and compress several dimensions of relative strength into one single scalable value, the RS4r, which allows you to compare and then rank securities for robustness across timeframes and shifting market conditions.
Relative strength (not to be confused with the RSI, which is the relative strength index developed by J. Welles Wilder) measures a security’s strength in comparison to another security. It is derived by dividing the first security by a second security or by the index to which it is compared ...