Relative Averages Explained:

Relative Strength (not to be confused with the RSI indicator) is a measure of price trend that indicates how a stock is performing relative to other stocks in its industry.  We can also measure the relative performance of each component of any index. Relative strength is typically a numerical measurement expressed as a percentage. For example, if a stock has a relative strength of 75 it has outperformed 75% of the stocks over a specified period.

Investor’s Business Daily publish their Relative Price Strength Rating that appears for each stock is calculated by comparing its price change over the past 12 months to that of all other stocks in the tables. Results are rated on a scale from 1 to 99, with 99 being best.

At Getting Technical our approach is unique in that we use Relative Analysis (RA) to measure the price performance of a stock vs. the price performance of an appropriate index over several time periods. Note our Air Canada weekly vs. the TSX 60 Index weekly This methodology allows us to scan of filter based of six relative conditions –.

Bottoming:

Early Out-perform:

Established Out-perform:

Topping:

Early Under-perform:

Established Under-perform:

In a filter / scan date Oct 4, 2013 for bottoming TSX listed stocks some symbols selected were ABX, ATH, ATP, EDR, HBM, SLW, T and TGL.