[isatrader]

Hi again!

More questions about the Mansfield Relative Strength Indicator. What index do you use to compare?
These are the scenarios, with my guesses:
1- aapl would be compared to NASDAQ:IXIC (composite) OR NASDAQ:NDX (non-finance top 100)
2- ibm would be compared to NYSE:NYA (composite) OR SP:SPX (top 500)
3- cnr.to would be compared to TSX:TSX (composite) OR ???
4- znx.v would be compared to TSX:JX (composite) OR ???
5- grek would be compared to INDEX:XAX (composite) OR???

Regards,

Patrick

Personally, I think you need to choose one as the main one that you use, as you need a constant to measure all stocks against each other on first glance, or if you were putting the Mansfield data into a relative strength spreadsheet table. For me this is the S&P 500, as roughly over the years it has averaged around 7% a year, and covers the 500 major stocks in the US market, so I found it very good for the Mansfield RS. But you could choose something else, as long as it's representative of a decent portion of the market imo.

That way once you know how your stock compares to everything else. Then you can do secondary comparisions against the index it is in, the major sector, sub sector or commodity etc. And then versus the other individual stocks that are it's competitors.