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2 . Select a stock traded on the NYSE and construct a daily high, low, and close bar chart for it that includes its volume
Select a stock traded on the NYSE and construct a daily high, low, and close bar chart for it that includes its volume of trading for consecutive trading days.
a Compute the relativestrength ratio for the stock relative to the S&P Index. Prepare a table that includes all the data and indicates the computations.
b Plot the RSI computed in part a on your bar chart. Note that the assignment in Canvas provides a template for computing RSI.
c Discuss whether the stock's relative strength is bullish or bearish. Do it in excel. Here is an excel file you can use. Date QQQQ Close Change Gain Loss Avg Gain Avg Loss RS day RSI
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jan RS RSI
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Feb
Note: The smoothing process affects RSI values. RS values are smoothed after the first calculation. Average Loss equals the sum of the losses divided by for the first calculation. Subsequent calculations multiply the prior value by add the most recent value and then divide the total by This creates a smoothing affect. The same applies to Average Gain. Because of this smoothing, RSI values may differ based on the total calculation period. periods will allow for smoothing than periods and this will slightly affect RSI values. Stockcharts.com goes back days when possible. If Average Loss equals zero, a "divide by zero" situation occurs for RS and RSI is set to by definition. Similarly, RSI equals when Average Gain equals zero.
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