In the Table below, Column A represents the difference between the number of stocks advancing and the number of stocks declining on the New York Stock Exchange for each of the last 8 days. The most recent day is first in sequence.
So, for example, today there were 2427 more stocks advancing than declining. Column B represents the difference between the more recent day’s Column A value and the Column A value for the day preceding it, which I am trying to use as a relative momentum gauge. What’s the best way to determine and numerically EXPRESS the momentum of advancing to declining stocks from one day to the next here?–THE NEGATIVE NUMBERS ARE THROWING ME. On day 6, for example, you can see that the downside momentum (Column B: -2120) was GREATER than day 7′s upside Mo of (106), but -2120 is expressed as a NEGATIVE number because of more decliners and appears less.
A:B
2427:2157
270:827
-577:605
-1162:598
-1760:-485
-1275:-2120
845:106
739:1537
Further clarification: Obviously removing the negative signs doesn’t solve the problem as you can see when comparing Day 5 to Day 6.
Am I correct that if I simply say in Excel: =IF (A1>A2, B1). Then, create a separate column C, subtracting A1 from A2, and then asking =IF (A1<A2, then C1). From there, I then merge the positive values and it will tell me whether the momentum was greater regardless of whether there were more stocks advancing or declining on any given day?
Yes, I think it is just a matter of removing the negative signs in the second column. Right?
Related posts:
show the change instead of the acutal numbers
Yes, remove the negative signs in coulmn B.
What you’re after (but correctly formated) is:
=If (A1>A2, A1-A2)
=If(A1<A2, A2-A1)
Incidentally, I am a bit curious as to how you plan on using the momentum indicator. I have successfully traded stocks and options using technical timing signals for fundamentally sound investment vehicles and have designed a number of technical indicators.