Technical Rank: Weighted Multi-Horizon Relative Strength for Watchlists

Summary

Technical Rank compares the price strength of a selected group of securities using weighted indicators across long-, medium-, and short-term horizons. The calculation combines distance from long- and medium-term moving averages, rates of change, the slope of the percentage price oscillator histogram, and the relative strength index. It clips the resulting score to a zero-to-100 range, then orders the chosen securities from strongest to weakest.

The author suggests using higher-ranked securities to identify candidates for long positions on pullbacks and lower-ranked ones to screen out weak names. The document also recommends comparing assets with similar trading sessions and checking more than one timeframe. It describes the formula and offers interpretive guidance, but gives no empirical test of whether the ranking predicts future returns. Scores are relative to the chosen comparison group, so changing the symbols can change the ranking and its meaning.

Key ideas

• The score combines moving-average distance, rate of change, PPO histogram slope, and RSI.
• Long-term components receive greater weight than medium- and short-term components.
• The indicator ranks a user-selected group of up to 20 securities by their calculated scores.
• Higher scores indicate stronger relative technical performance within that selected group.
• The document offers screening guidance but provides no evidence of predictive performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.