Post #5424 by gritton on the Mechanical Investing board

Investment Strategies / Mechanical Investing

Unthreaded | Threaded | Whole Thread (7)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 10

What is the difference between rrs(regression relative strength) and rsi(Relative Strength Index)?

RRS uses all data points between (today) and (1 year ago), and builds a least-squares regression line from them. It's an open-ended number that's higher when the trend is a gain.

RSI is a kind of exponential-average comparison of gains and loss days. As such, it uses only (today) and its own accumulators. It's a range-bound number (typically 0 to 100) that is nearer the top as gains exceed losses.

Which one does the simple relative strength calculation:
"price(today) / price(1 year ago)"

Nether. RSS is at least a different measure of the same general idea.

- Jamie

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (7)

Prev | Next

Announcements

Mechanical Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.