How to create the Mansfield Relative Performance Indicator
#17
(02-16-2016, 01:26 AM)wpeters Wrote: My version where indicator moves between +10 and -10. Whilst the numbers are not the same the points where the indicator crosses the zero line are much closer to those in the book.

I believe the original Mansfield Relative Strength used a proprietary method to do the calculation, as it used a weighted MA for the zero line, and was also based on the DOW or NYSE, and not the S&P 500. So you won’t get an exact match. But using the 52 week simple MA of the relative performance of the stock versus the S&P 500 is the best approximation these days imo, and the board literally has thousands of examples proving its use.

My research over the years has found that showing the zero line as the actual moving average on the chart gives an extra vital piece of information, as if the stock goes above the zero line when the zero line itself is still declining, then the chances of failure increase dramatically. And this was confirmed in a brief Q&A with Stan a number of years ago, and has now become one of the breakout checklist core rules. As A+ breakouts almost always occur when the relative performance zero line is either flattening or rising. If it's still declining, then it's usually a red flag.

And so you can't see this extra information with the flat version of the Mansfield RS, and hence why I show the version with the actual MA slope in view.
isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill – Reminiscences of a Stock Operator.
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#18
(02-16-2016, 01:54 AM)isatrader Wrote: My research over the years has found that showing the zero line as the actual moving average on the chart gives an extra vital piece of information, as if the stock goes above the zero line when the zero line itself is still declining, then the chances of failure increase dramatically. And this was confirmed in a brief Q&A with Stan a number of years ago, and has now become one of the breakout checklist core rules. As A+ breakouts almost always occur when the relative performance zero line is either flattening or rising. If it's still declining, then it's usually a red flag.

And so you can't see this extra information with the flat version of the Mansfield RS, and hence why I show the version with the actual MA slope in view.

So is the "MA zero line" the 52 week MA of the RS indicator?
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#19
(02-16-2016, 03:58 AM)wpeters Wrote: So is the "MA zero line" the 52 week MA of the RS indicator?

Yep. It's no more complicated than that.
isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill – Reminiscences of a Stock Operator.
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#20
(05-27-2013, 06:16 PM)isatrader Wrote: One of the core components of Stan Weinstein's method is the use of Relative Performance compared to an index such as the S&P 500, to a sector or to another stock. Which was referred to in his book as Relative Strength.

Weinstein defines it as the following on page 18 of the book:

Below is a weekly chart of Apple (AAPL) showing the two versions of the Relative Performance Indicator versus the S&P 500 Index.

On stockcharts how did you create the Mansfield looking RSI with the 0 line? I have never been able to figure that out. Thanks.
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#21
On chartmill.com it lets you add the Mansfield Relative Strength Indicator. Very simple and clear. it also has a ''Weinstein Stage Indicator. Might be something to look into if anybody is interested.
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#22
Did anybody code this for Sharescope ?
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#23
Did anybody code this for ProRealTime?
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#24
It is already in ProRealTime. In the indicators of the French version, you find it under "Force Relative de Mansfield (Comparison)".
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