How to Calculate the Relative Strength For a Stock on the TSE

Investors Business Daily publishes the RS for American stocks, but such information for Canadian stocks is hard to come by. Here's how to calculate RS.

Difficulty Level: Average    Time Required: half hour

Here's How:

  1. Go to the Filter function at Globeinvestor. (See link below.)
  2. Change the price filter from 1 to 0 and click Go. This generates a report with all the stocks on the TSE, giving you the total number of stocks, usually around 1700-1750 (Let's say 1730 for our example).
  3. Scroll down to the bottom of the page and enter the symbol for the stock you want to evaluate and click Go. This will generate a short report on your stock.
  4. Check the One Year perfomance and subtract 0.01. (e.g. performance is 63.4; subtract 0.01 to get 63.3)
  5. Click the back button twice and enter 1 Year is Greater Than the number obtained in Step 4 and click Go. This will generate a report with all the stocks doing better than the percentage you entered.
  6. In the headings at the top of the table, click on 1 Year. This will re-order the table from best return to lowest return. Your stock will be last or close to last on the list. (You may omit this step if you like.)
  7. At the top of the page is the heading "1 to 50 of XY" where XY is the number of stocks generated by your filter search.
  8. Calculate the RS by subtracting XY from the total number of stocks on the TSE and divide the result by the total number of stocks.  Example: If the report generates 307 stocks, the RS will be (1730-307)/1730 = 82.2

Tips:

  1. I periodically do an RS report here at Investing: Canada, which includes the Top 500 stocks listed sequentially and alphabetically. Check the link below.

Related Information:

What You Need:

Computer
Internet Connection
Calculator (optional)