Metaphor Vigour Ratio### **Script Name:** Metaphor Vigour Ratio
**Short Title:** Metaphor Vigour Ratio
**Author:** Sovit Manjani, CMT
**Description:**
The Metaphor Vigour Ratio (MVRatio) is a powerful Relative Strength Indicator designed for assessing normalized relative strength. It is versatile and can be applied to any script or used to rank symbols based on their intermarket relative strength.
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### **Features:**
1. **Bullish and Bearish Signals:**
- **Above 100:** Indicates a bullish trend.
- **Below 100:** Indicates a bearish trend.
2. **Trend Analysis with Slope:**
- **Slope Rising:** Suggests bullish momentum.
- **Slope Falling:** Suggests bearish momentum.
3. **Stock Selection Strategy:**
- Identify and rank stocks based on the MVRatio. For example, buy the top 10 stocks of Nifty with the highest MVRatio values for strong performance potential.
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### **Inputs:**
1. **Fast EMA Period (RSEMAFast):** Default set to 10. Controls the sensitivity of the Fast Moving Average.
2. **Slow EMA Period (RSEMASlow):** Default set to 30. Provides a stable trend base with the Slow Moving Average.
3. **Smooth EMA Period (SmoothEMA):** Default set to 3. Smooths the MVRatio for better clarity.
4. **Close Source:** Default is the closing price, but it can be customized as needed.
5. **Comparative Symbol (ComparativeTickerId):** Default is "NSE:NIFTY," allowing comparison against a benchmark index.
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### **Calculation Logic:**
1. **Relative Strength (RS):**
- Calculated as the ratio of the base symbol's price to the comparative symbol's price.
2. **Exponential Moving Averages (FastMA and SlowMA):**
- Applied to the RS to smooth and differentiate trends.
3. **Metaphor Vigour Ratio (MVRatio):**
- Computed as the ratio of FastMA to SlowMA, scaled by 100, and further smoothed using SmoothEMA.
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### **Visualization:**
1. **MVRatio Plot (Blue):**
- Represents the relative strength dynamics.
2. **Reference Line at 100 (Gray):**
- Helps quickly identify bullish (above 100) and bearish (below 100) zones.
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### **How to Use:**
1. Add the indicator to your chart from TradingView's Pine Script editor.
2. Compare the performance of any symbol relative to a benchmark (e.g., Nifty).
3. Analyze trends, slopes, and ranking based on MVRatio values to make informed trading decisions.
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**Note:** This indicator is for educational purposes and should be used alongside other analysis methods to make trading decisions.
相对强弱比较(RSC)
Multi-Timeframe RSI AlertsThe Multi-Timeframe RSI Alerts indicator is designed to monitor and alert you when the Relative Strength Index (RSI) crosses the 50 threshold across three different timeframes simultaneously. This helps traders identify potential trend shifts by observing RSI behavior across multiple market perspectives.
Key Features:
Multiple Timeframes: This indicator allows you to track the RSI across three customizable timeframes (e.g., 15m, 5m, 1m) in a single view, giving you a broader market outlook.
RSI Calculation: The RSI is calculated for each of the selected timeframes using the standard RSI formula (default length: 14). You can adjust the source (close by default) for RSI calculation.
Cross 50 Alert: Alerts are triggered when the RSI for all three timeframes crosses the key 50 level, signaling potential changes in market momentum or trend direction.
Visual Reference: The indicator visually plots the RSI for each timeframe, with a clear 50 level line to highlight crossovers and crossunders.
How to Use:
Trend Confirmation: When all three RSIs cross the 50 level in the same direction (either up or down), it may signal a strong confirmation of trend direction across multiple timeframes.
Versatile Timeframe Setup: Traders can configure the timeframes according to their strategy. For example, short-term traders can focus on faster timeframes like 1-minute, 5-minute, and 15-minute, while longer-term traders may prefer 1-hour, 4-hour, and daily timeframes.
Saral Relative Strength ComparisonRelative Strength Comparison
### Overview
The Relative Strength (RS) Indicator is a robust tool designed to measure the performance of sectors or stocks relative to a benchmark index. This indicator provides a comprehensive way to compare the relative strength of different sectors or stocks, with the default selection being the major sectors of the National Stock Exchange (NSE). It allows traders to analyze which sectors or stocks are outperforming or underperforming the benchmark over a specific period.
The RS compares how much a security's price has changed over a given period relative to the change in price of a benchmark over the same period. The result is expressed as a percentage, showing whether the security has outperformed or underperformed the benchmark. Positive RS values indicate outperformance, while negative values signal underperformance.
This indicator provides a dual representation of the data. RS values are displayed in both line charts and a table. The line charts provide a visual representation of trends, while the table offers a clear numerical comparison of the current, previous, and earlier RS values along with the rank of the sector/stock.
### Key Features
Benchmark & Sectors/Stocks Comparison:
Users can select a benchmark index (default: NIFTY 50) and up to 20 sectors or stocks for comparison. By default, the indicator includes the major sectors of NSE, but users can customize the selection as needed.
Customizable RS Calculation:
Users can set the period for RS calculation, with a default of 22 periods, providing flexibility to match different trading strategies.
Flexible Time Frame:
RS calculations are based on the time frame of the main chart, allowing users to seamlessly switch between different periods, from minutes to hours, days, weeks, or even months depending on their analysis needs.
Customizable Line Chart:
Users can adjust the width and color of the RS lines for each sector, making it easier to distinguish between different sectors on the chart.
Dynamic Table Display:
The indicator includes a toggle to display a table of RS values, with customizable position, toggle for background color coding, and selection for text color & size. This makes it easy to compare the RS values across multiple sectors at a glance.
Sorting Options:
The table can be sorted either by alphabetical order of sector/stock names or by their rank. The default sorting is by rank, but switching to alphabetical order helps to identify data of specific sector with ease.
Ranking System:
The table includes a column displaying the rank of each sector or stock based on their RS, with the top-performing items listed first by default. This helps users quickly identify market leaders and laggards.
Color-Coded Backgrounds:
The background color of the sector/stock names in the table corresponds to the colors of their RS lines on the chart, making it easy to correlate table data with the visual plots. Also, the table uses a color-coding system which shows ranks of RS Positive sectors with Green background and RS Negative sectors with Red background. Similarly, the maximum RS value of individual sector is highlighted in Navy Blue, the minimum in Aqua and other in Blue background. This visual aid helps users quickly identify the performance trend of individual sector.
Table Positioning:
The table can be positioned at different locations on the chart (Top Right, Middle Right, Bottom Right, Top Left, Middle Left, Bottom Left), ensuring it doesn't obstruct important chart data.
### Input - RS Parameters:
Benchmark: Ticker ID of the comparative security. The default benchmark is the NIFTY 50 index, but users can select any other ticker as the benchmark for comparison.
Period-RS: The period for calculating the RS line. The default period is 22, but users can adjust this to suit their trading strategy and to analyze different time horizons for sector performance.
Line Width: Determines the thickness of the RS line in the chart. The default width is 2, providing a clear visual distinction between different sectors.
### Input - Table Parameters:
Show Table: Toggle to display or hide the table, allowing users to switch between graphical and tabular data representations.
Table Sorting: Users can sort the table alphabetically or by RS rank. The default sorting is by rank.
Table Position: Allows users to select the position of the table on the chart. Options include Top Right, Middle Right, Bottom Right, Top Left, Middle Left, and Bottom Left. The default position is Middle Right.
Color Code for Background: The background of the sector/stock names corresponds to their plot colors for easy mapping between plot and table values. Rank of RS Positive sectors will be highlighted with Green background and RS Negative sectors will be highlighted with Red color. The background color of the RS values in the table will change based on their magnitude. The highest RS value is Navy Blue, the lowest is Aqua, and other is Blue. This visual aid helps users quickly identify the performance of which sectors are improving or deteriorating.
Text Color: Users can select the color of the text displayed in the table. The default text color is White, ensuring readability against various background colors.
Text Size: Allows users to choose the size of the text in the table. Options include Auto, Tiny, Small, Medium, and Large, with the default being Small. This customization ensures that the table remains legible on different chart sizes.
### Input - Sectors/Stocks:
Sector/Stock Selection: Users can select which sectors to include as well as how many sectors to include in the analysis. The default sectors are major sectors of the National Stock Exchange, India. The selected sectors will be plotted as RS lines on the chart and will also appear in the table.
Color: Allows users to choose the color for each sector's RS line, making it easy to distinguish between them on the chart.
### Acknowledgement
This indicator is developed based on the concept discussed by Mr. Subhadip Nandy in Trader's Talk with Mr. Rohit Katwal.
StockInfo ManualScript Description:
The StockInfo Manual is designed to display detailed stock information directly on the chart for the selected symbol. It processes user-provided input data, including
stock symbols
Industries
Relative Strength (RS) values
Band information
Key Features:
1. Symbol-Specific Data Display: Displays information only for the current chart symbol.
2. Customizable Table: Adjust the table's position, text size, colors, and headers to match your preferences.
3. Low RS/Band Conditions: Highlights critical metrics (RS < 50 or Band < 6) with a red background for quick visual cues.
4. Toggle Information: Choose to show or hide RS, Band, and Industry columns based on your needs.
How to Use the Script:
1. Use any platform (ex: chartsmaze) to get Industry,RS and Band information of any Stock. Prepare the data as separate column of excel
2. Configure Inputs:
- Stock Symbols (`Stock`): Enter a comma-separated list of stock symbols (e.g.,
NSE:ABDL,
NSE:ABFRL,
NSE:ABREL,
NSE:ABSLAMC,
NSE:ACC,
NSE:ACE,
- Industries (`Industry`): Provide a comma-separated list of industries for the stocks (e.g., 103-Brewerie,
109-Retail-D,
92-Paper & ,
19-Asset Ma,
62-Cement,
58-Industri,
- Relative Strength (`RS`): Input RS values for each stock (e.g.,
83,
52,
51,
81,
23,
59,
- Band Information (`Band`): Specify Band values for each stock. Use "No Band" if 10,
No Band,
20,
20,
No Band,
20,
3. Customize the Table:
-Display Options: Toggle the visibility of `RS`, `Band`, and `Industry` using the input checkboxes.
-Position and Appearance: Choose the table's position on the chart (e.g., top-right, bottom-center). Customize text size, background colors, header display, and other visual elements.
4. Interpret the Table:
- The table will dynamically display information for the current chart symbol only.
- If the `RS` is below 50 or the Band is below 6, the corresponding row is highlighted with a red background for immediate attention.
One need to enter details at least weekly for a correct result
Currency Strength Indicator LUX TRADING ACADEMYMisura la forza relativa delle valute mettendole a confronto
Currency Strength Indicator LUX TRADING ACADEMYMisura la forza relativa delle valute e le mette a confronto
Currency Strength Indicator LUX TRADING ACADEMYMisura la forza relativa delle valute e mette queste ultime a confronto
Alpha ZonesThe Alpha Zones Indicator is a powerful tool that analyzes a stock’s performance relative to its benchmark across multiple timeframes (3, 6, 9, and 12 months). It combines these insights into a single, easy-to-interpret metric called Combo Alpha, highlighting consistent outperformance or underperformance.
Key features include:
Multi-Timeframe Alpha Analysis: Evaluate short-term and long-term performance trends.
Combo Alpha Metric: A consolidated score for quick decision-making.
Custom Benchmark Selection: Compare performance against any index or symbol.
Visual Clarity: Color-coded histogram with a zero line for easy interpretation.
Relative Performance Indicator by ComLucro - 2025_V01The "Relative Performance Indicator by ComLucro - 2025_V01" is a powerful tool designed to analyze an asset's performance relative to a benchmark index over multiple timeframes. This indicator provides traders with a clear view of how their chosen asset compares to a market index in short, medium, and long-term periods.
Key Features:
Customizable Lookback Periods: Analyze performance across three adjustable periods (default: 20, 50, and 200 bars).
Relative Performance Analysis: Calculate and visualize the difference in percentage performance between the asset and the benchmark index.
Dynamic Summary Label: Displays a detailed breakdown of the asset's and index's performance for the latest bar.
User-Friendly Interface: Includes customizable colors and display options for clear visualization.
How It Works:
The script fetches closing prices of both the asset and a benchmark index.
It calculates percentage changes over the selected lookback periods.
The indicator then computes the relative performance difference between the asset and the index, plotting it on the chart for easy trend analysis.
Who Is This For?:
Traders and investors who want to compare an asset’s performance against a benchmark index.
Those looking to identify trends and deviations between an asset and the broader market.
Disclaimer:
This tool is for educational purposes only and does not constitute financial or trading advice. Always use it alongside proper risk management strategies and backtest thoroughly before applying it to live trading.
Chart Recommendation:
Use this script on clean charts for better clarity. Combine it with other technical indicators like moving averages or trendlines to enhance your analysis. Ensure you adjust the lookback periods to match your trading style and the timeframe of your analysis.
Additional Notes:
For optimal performance, ensure the benchmark index's data is available on your TradingView subscription. The script uses fallback mechanisms to avoid interruptions when index data is unavailable. Always validate the settings and test them to suit your trading strategy.
S&P 500 E-Mini TrackerThis script generates a reference price for the S&P 500 ETF - SPY based on the current price of the ES contract, which is an E-Mini Futures contract representing the S&P 500 index. The indicator plots this reference price on the chart, providing a unique view of the relationship between these two popular markets.
Advantages:
Identifies divergence between the ES and SPY prices, indicating potential trading opportunities or shifts in market sentiment.
Confirms trends by showing the correlation between the ES and SPY prices.
Eliminates the need for multiple charts, allowing traders to focus on a single screen and make more informed decisions.
Customizable Parameters:
Color Scheme: Choose from various color options to customize the appearance of the indicator.
Line Style: Select from different line styles to change the visual representation of the reference price.
Divisor: Set the dividing factor to adjust the ratio at which the reference price is calculated. (Default value: 10). It is recommended to keep it at 10 for SPY.
To use it with other Stocks/ ETFs, use simple ratio math to calculate the divisor and you can customize the indicator to scale accordingly.
By using this indicator, traders can gain a deeper understanding of the relationship between the E-Mini and SPY markets, making it easier to identify trading opportunities and confirm trends.
Relative Price Strength (RPS)Relative Price Strength (RPS) is a technical analysis indicator that measures the performance of a specific symbol relative to a benchmark or "Base Symbol".
It's essentially a ratio that compares the price of the specific symbol to the price of the benchmark.
Rising RPS: Indicates that the symbol is outperforming the benchmark.
Falling RPS: Suggests that the symbol is underperforming the benchmark.
RSP is smoothed over a period for better visualization.
Relative Strength vs SPX
This indicator calculates the ratio of the current chart's price to the S&P 500 Index (SPX), providing a measure of the stock's relative strength compared to the broader market.
Key Features:
Dynamic High/Low Detection: Highlights periods when the ratio makes a new high (green) or a new low (red) based on a user-defined lookback period.
Customizable Lookback: The lookback period for detecting highs and lows can be adjusted in the settings for tailored analysis.
Visual Overlay: The ratio is plotted in a separate pane, allowing easy comparison of relative strength trends.
This tool is useful for identifying stocks outperforming or underperforming the S&P 500 over specific timeframes.
Profit Hunter - RS Supernova中文說明
狩利 (Profit Hunter) - RS 超新星 是一款專為加密貨幣市場設計的相對強度篩選指標,靈感來自 Mark Minervini 和 William O'Neil 的投資理念。此指標透過「RS 超新星」篩選概念,幫助交易者聚焦在市場中的極端強勢標的,從而更精準地捕捉高潛力的進場機會。
指標用途
RS 評級 (RS Rating):基於相對強度 (Relative Strength) 概念,將標的與整體市場 (TOTAL 指數) 進行比較,得出 RS 評級。當 RS 評級超過 85 時,該標的被視為具有極強的上漲動能,是潛在的進場目標。
高潛力篩選:此指標利用動態加權計算方式,篩選出相對強勢的標的,讓交易者可以聚焦於具有突破潛力的資產。
即時數據顯示:在圖表上即時顯示 RS 評級,提供清晰的數據支持,使交易者快速判斷標的的強度並做出即時決策。
狩利-RS 超新星 專為追求市場主流趨勢的交易者設計,特別適合應用 Minervini 和 O'Neil 理論的投資者。該指標幫助您在市場波動中篩選出最具相對強度的標的,確保每次進場都是基於高潛力的技術分析。
English Description
Profit Hunter - RS Supernova is a relative strength (RS) filtering indicator specifically designed for the cryptocurrency market, inspired by the investment philosophies of Mark Minervini and William O'Neil. Through the concept of the "RS Supernova," this indicator helps traders focus on exceptionally strong assets within the market, enabling precise entry into high-potential opportunities.
Indicator Purpose
RS Rating: Based on Relative Strength (RS) analysis, the indicator compares the asset to the overall market (TOTAL index) to generate an RS Rating. When the RS rating exceeds 85, the asset is considered to have substantial upward momentum, marking it as a potential entry target.
High-Potential Screening: Utilizing a dynamic weighted calculation, this indicator filters out assets with relative strength, allowing traders to concentrate on those with breakout potential.
Real-Time Data Display: The RS Rating is displayed on the chart, providing clear data for quick assessment of asset strength and enabling real-time decision-making.
Profit Hunter - RS Supernova is designed for traders seeking to capture mainstream market trends, especially those following Minervini and O'Neil's theories. This indicator aids in identifying the strongest assets amidst market fluctuations, ensuring each entry is backed by high-potential technical analysis.
Real Relative Strength Indicator (Multi-Index Comparison)The Real Relative Strength (RRS) indicator implements the "Real Relative Strength" equation, as detailed on the Real Day Trading subreddit wiki. This equation measures whether a stock is outperforming a benchmark (such as SPY or any preferred ETF/index) by calculating price change normalized by the Average True Range (ATR) of both the stock and the indices it’s being compared to.
The RRS metric often highlights potential accumulation by institutional players. For example, in this chart, you can observe accumulation in McDonald’s beginning at 1:25 pm ET on the 5-minute chart and continuing until 2:55 pm ET. When used in conjunction with other indicators or technical analysis, RRS can provide valuable buy and sell signals.
This indicator also supports multi-index analysis, allowing you to plot relative strength against two indices simultaneously—defaulting to SPY and QQQ—to gain insights into the "real relative strength" across different benchmarks. Additionally, this indicator includes an EMA line and background coloring to help automatically identify relative strength trends, providing a clearer visualization than typical Relative Strength Comparison indicators.
Weekly RSI Buy/Sell SignalsWeekly RSI Buy/Sell Signal Indicator
This indicator is designed to help traders identify high-probability buy and sell opportunities on the weekly chart by using the Relative Strength Index (RSI). By utilizing weekly RSI values, this indicator ensures signals align with broader market trends, providing a clearer view of potential price reversals and continuation.
How It Works:
Weekly RSI Calculation: This script calculates the RSI using a 14-period setting, focusing on the weekly timeframe regardless of the user’s current chart view. The weekly RSI is derived using request.security, allowing for consistent signals even on intraday charts.
Signal Conditions:
Buy Signal: A buy signal appears when the RSI crosses above the oversold threshold of 30, suggesting that price may be gaining momentum after a potential bottom.
Sell Signal: A sell signal triggers when the RSI crosses below the overbought threshold of 70, indicating a possible momentum shift downwards.
Visual Cues:
Buy/Sell Markers: Clear green "BUY" and red "SELL" markers are displayed on the chart when buy or sell conditions are met, making it easy to identify entry and exit points.
RSI Line and Thresholds: The weekly RSI value is plotted in real time with color-coded horizontal lines at 30 (oversold) and 70 (overbought), providing a visual reference for key levels.
This indicator is ideal for traders looking for reliable, trend-based signals on higher timeframes and can be a helpful tool for filtering out shorter-term market noise.
Industry Group Strength - IndiaPresenting the Industry Group Strength Indicator for India market, designed to help traders identify top-performing stocks within specific industry groups that are predefined.
⦿ Identifies Leading Stocks in Industry Groups
⦿ Analyses the following metrics
YTD Return : Measures stock performance from the start of the year.
RS Rating : Relative Strength rating for user-selected periods.
% Return : Percentage return over a user-selected lookback period.
Features
This indicator dynamically recognises the industry group of the current stock on the chart and ranks stocks within that group based on predefined data points. Traders can add this indicator to focus on top-performing stocks relative to their industry.
⦿ Color-coded for Easy Visualisation
You can choose from the following key metrics to rank stocks:
YTD Return
RS Rating
% Return
⦿ Table Format with Performance Metrics Compact mode
Vertical View
Horizontal View
All of the three metrics are shown in the compact mode and the current stock that is viewed is highlighted!
Vertical view
Horizontal view
Stock Ranking
Stocks are ranked based on their performance within industry groups, enabling traders to easily spot leaders and laggards in each sector. Color-coded gradients visually represent the stocks’ performance rankings, with higher percentile rankings indicating better performance.
Relative Strength (RS)
Relative Strength (RS) compares a stock’s performance against the benchmark index. The RS value is normalized from 1 to 99, making it easier to compare across different stocks. A rising RS value indicates that the stock is outperforming the market, helping traders quickly gauge relative performance within industry groups.
Limitations
At the time of developing this indicator, Pine requests are limited to 40 per script so the predefined symbols had to be filtered to 40 per Industry group
Stocks Filters
Filters that are used to filter the stocks in an Industry group to have maximum of 40 stocks
⦿ Auto, Chemical, Engineering, Finance, Pharma
Market Cap >= 1000 Crores and Market Cap <= 60000 Crores
Price >= 30 and Price <= 6000
50 Days Average ( Price * Volume ) >= 6 Crores
⦿ For rest of the Industry groups
Market Cap >= 1000 Crores and Market Cap <= 100000 Crores
Price >= 20 and Price <= 10000
50 Days Average ( Price * Volume ) >= 3 Crores
Credits
This indicator is forked from the Script for US market by @Amphibiantrading Thanks Brandon for the beginning of this indicator.
This indicator is built on TradingView’s new dynamic requests feature, thanks to @PineCoders for making this possible!
OutperformX VCPSwingDesigned to measure and visualize the relative strength and outperformance of a stock compared to a benchmark. Here’s a feature-by-feature breakdown
Credits to Eeshan for all the help
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Alpha Calculation: What's it About?
The key component of this indicator is the Alpha calculation, which measures a stock's outperformance relative to a base index (e.g., Nifty Midsmall 400) while accounting for risk-free returns. By comparing the stock's performance with the base and risk-free rates, we get the Alpha.
The Alpha logic has been slightly modified, not strictly following the textbook approach
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Customizable Inputs: Tailored for You
You can choose whether to display Alpha.
Change the Base Index (e.g., NiftyMidsmall400).
Adjust the Performance Period (Days) for custom Alpha/Outperformance calculations.
Performance options range from 5 to 252 days, helping to fine-tune the outperformance tracking.
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Highlighting Performance Peaks: Short-Term & Long-Term
The indicator automatically highlights Short-Term Peak Performance over customizable short-term windows (e.g., 21 days).
It also detects Long-Term Performance Peaks, spanning up to 52 weeks. These peaks are represented as dots on the Alpha line.
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Color-Coded Alpha: Clear Visuals
To make the indicator visually intuitive:
Positive Alpha (outperformance) is marked in green.
Negative Alpha (underperformance) is shown in red. These are customizable so you can adjust colors to your preference!
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Outperformance Before Price Peaks
One cool feature is tracking whether Alpha outperforms before the price hits new highs. If Alpha breaks out but price lags, a “dot” is drawn, giving a heads-up on potential upcoming price moves.
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Background Color Highlighting
Background colors change dynamically based on performance:
Green for positive Alpha (outperformance).
Red for negative Alpha (underperformance). This gives a quick visual reference of the stock’s performance at a glance.
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Filling the Alpha Zone
The indicator fills the area between the Alpha line and zero. This shading helps highlight the magnitude of outperformance (or underperformance) and provides a quick visual cue about trends.
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Get Started
With all these features combined, the Outperformance indicator becomes a powerful tool for spotting leading stocks, tracking risk-adjusted performance, and identifying performance peaks before price catches up.
Relative Strength Price Oscillator Indicator (RS PPO)Percentage Price Oscillator (PPO)
The Percentage Price Oscillator (PPO) is a momentum oscillator that measures the difference between two moving averages as a percentage of the larger moving average. As with its cousin, MACD, the Percentage Price Oscillator is shown with a signal line, a histogram and a centerline. Signals are generated with signal line crossovers, centerline crossovers, and divergences.
PPO readings are not subject to the price level of the security and the PPO values for different securities can be compared, regardless of the price of the security.
Relative Strength (RS)
Relative strength is a strategy used in momentum investing and focuses on investing in stocks or other securities that have performed well relative to the market as a whole or to a relevant benchmark.
Chart
In the chart, Microsoft stock (MSFT) is plotted against the VanEck Semiconductor ETF (SMH).
In the example on the left, from the negative values of the RS PPO it can be seen that MSFT, although trending upward, is losing out in negative terms to the SMH etf.
In the example on the right, during a correction phase with a downward price trend, Microsoft held up relatively well compared to the Van Eck Semiconductor etf.
Smart Momentum Relative StrengthSmart Momentum Relative Strength
Creator Journey
The Smart Momentum Relative Strength indicator is
created by Vishal R. Janjire , inspired by BharatTrader sir, and parameters guided by mentor stockedge founder Vivek Bajaj sir.
Reason? ...Why choose Smart Momentum Relative Strength.
1.Simple to Trade: This indicator simplifies trading decisions. You just need to follow the background color displayed on the chart. When the background is green, it signals a bullish trend, and when it turns red, it signals a bearish trend. For an even cleaner experience, you can untick the Relative Strength (RS) toggle in the indicator settings and focus purely on trading based on these background colors, making the process straightforward and efficient.
2.Unlock the power to compare any stock, share, commodity, forex or cryptocurrency against major indices like Nasdaq Composite, NYSE Composite, Bitcoin, NG, Gold, Silver, Crude oil, Nasdaq-100, Nifty 50, Hang Seng Index, FTSE 100, and many more! With the Comparative Relative Strength (RS) indicator,
You can easily change the default Nifty 50 comparative symbol to any index or asset of your choice, such as Gold, Silver, Crude Oil, or global benchmarks like the Dow Jones Industrial Average, DAX, Euronext 100, and SSE Composite.
This versatile tool allows traders to measure how well a base symbol (e.g., stock or crypto) performs relative to a chosen benchmark over a specified period. Whether you're analyzing the relative strength of Bitcoin against the Nasdaq-100 or comparing stocks to the S&P 500, this indicator provides valuable insights into market trends and outperforming assets.
The Smart Momentum Relative Strength combines several advanced technical analysis tools into one comprehensive Pine Script indicator designed to provide a nuanced view of market strength and trends. This script integrates Relative Strength (RS), Commodity Channel Index (CCI), and additional trend confirmation mechanisms to deliver actionable insights for traders.
Below are key points to understand before using this indicator:
Important Parameters:
1. Green Line: Represents stocks outperforming the comparative index, which is Nifty 50. However, do not apply this result directly to Nifty 50 itself, as it will not work exclusively on the Nifty 50 index.
2. Red Line: Indicates that the stock is underperforming relative to the Nifty 50 index.
3. Green Background: Signifies that both the current time momentum and higher time momentum are aligned, indicating an upward trend.
4. Red Background: Signifies that both the current time momentum and higher time momentum are aligned, indicating a downward trend.
5. Blank Space: This occurs when the two timeframes are not aligned, indicating market uncertainty and signaling a potential change in market direction, it means short time frame or current time frame changed its direction to opposite side.
Multi-Time Frame (MTF) Settings:
This indicator incorporates a default multi-time frame setup, as follows:
1 and 2 Minute chart = 5 Minute higher time frame
3 Minute chart = 15 Minute higher time frame
5 Minute chart = 15 Minute higher time frame
10 Minute chart = 60 Minute higher time frame
15 Minute chart = 60 Minute higher time frame
20 and 30 Minute chart = 120 Minute higher time frame
1 Hour chart = 4 Hour higher time frame
2 Hour chart = 4 Hour higher time frame
4 Hour chart = 1 Day higher time frame
1 Day chart = 1 Week higher time frame
1 Week chart = 1 Month higher time frame
1 Month chart = 12 Month higher time frame
For any other chart time frame = Day time is default time frame
1. Relative Strength (RS) Analysis:
Calculation: Measures the performance of the base symbol relative to a comparative symbol over a specified period.
Visualization: The RS value is plotted with color-coded lines to indicate bullish (green) or bearish (red) conditions based on crossovers. Users can customize the color based on value or trend direction.
Trend Analysis: A simple moving average (SMA) of RS is displayed to visualize trend strength and direction, with color changes to reflect rising or falling trends.
2. Commodity Channel Index (CCI):
- Current Timeframe CCI: Calculates the CCI for the current timeframe to assess price momentum.
- Higher Timeframe CCI: Computes the CCI for a higher timeframe to provide a broader market perspective.
- Background Color: Highlights the chart background in green or red based on whether both current and higher timeframe CCIs are above or below zero, respectively.
-Blank Space: This occurs when the two timeframes are not aligned, indicating market uncertainty and signaling a potential change in market direction, it means short time frame or current time frame changed its direction to opposite side.
The Adaptive Pairwise Momentum System [QuantraSystems]The Adaptive Pairwise Momentum System
QuantraSystems guarantees that the information created and published within this document and on the Tradingview platform is fully compliant with applicable regulations, does not constitute investment advice, and is not exclusively intended for qualified investors.
Important Note!
The system equity curve presented here has been generated as part of the process of testing and verifying the methodology behind this script.
Crucially, it was developed after the system was conceptualized, designed, and created, which helps to mitigate the risk of overfitting to historical data. In other words, the system was built for robustness, not for simply optimizing past performance.
This ensures that the system is less likely to degrade in performance over time, compared to hyper-optimized systems that are tailored to past data. No tweaks or optimizations were made to this system post-backtest.
Even More Important Note!!
The nature of markets is that they change quickly and unpredictably. Past performance does not guarantee future results - this is a fundamental rule in trading and investing.
While this system is designed with broad, flexible conditions to adapt quickly to a range of market environments, it is essential to understand that no assumptions should be made about future returns based on historical data. Markets are inherently uncertain, and this system - like all trading systems - cannot predict future outcomes.
Introduction
The Adaptive Pairwise Momentum System is not just an indicator but a comprehensive asset rotation and trend-following system. In short, it aims to find the highest performing asset from the provided range.
The system dynamically optimizes capital allocation across up to four high-performing assets, ensuring that the portfolio adapts swiftly to changing market conditions. The system logic consists of sophisticated quantitative methods, rapid momentum analysis, and robust trend filtering. The overarching goal is to ensure that the portfolio is always invested in the highest-performing asset based on dynamic market conditions, while at the same time managing risk through broader market filters and internal mechanisms like volatility and beta analysis.
Legend
System Equity Curve:
The equity curve displayed in the chart is dynamically colored based on the asset allocation at any given time. This color-coded approach allows traders to immediately identify transitions between assets and the corresponding impact on portfolio performance.
Highlighting of Current Highest Performer:
The current bar in the chart is highlighted based on the confirmed highest performing asset. This is designed to give traders advanced notice of potential shifts in allocation even before a formal position change occurs. The highlighting enables traders to prepare in real time, making it easier to manage positions without lag, particularly in fast-moving markets.
Highlighted Symbols in the Asset Table:
In the table displayed on the right hand side of the screen, the current top-performing symbol is highlighted. This clear signal at a glance provides immediate insight into which asset is currently being favored by the system. This feature enhances clarity and helps traders make informed decisions quickly, without needing to analyze the underlying data manually.
Performance Overview in Tables:
The left table provides insight into both daily and overall system performance from inception, offering traders a detailed view of short-term fluctuations and long-term growth. The right-hand table breaks down essential metrics such as Sharpe ratio, Sortino ratio, Omega ratio, and maximum drawdown for each asset, as well as for the overall system and HODL strategy.
Asset-Specific Signals:
The signals column in the table indicates whether an asset is currently held or being considered for holding based on the system's dynamic rankings. This is a critical visual aid for asset reallocation decisions, signaling when it may be appropriate to either maintain or change the asset of the portfolio.
Core Features and Methodologies
Flexibility in Asset Selection
One of the major advantages of this system is its flexibility. Users can easily modify the number and type of assets included for comparison. You can quickly input different assets and backtest their performance, allowing you to verify how well this system might fit different tokens or market conditions. This flexibility empowers users to adapt the system to a wide range of market environments and tailor it to their unique preferences.
Whole System Risk Mitigation - Macro Trend Filter
One of the features of this script is its integration of a Macro-level Trend Filter for the entire portfolio. The purpose of this filter is to ensure no capital is allocated to any token in the rotation system unless Bitcoin itself is in a positive trend. The logic here is that Bitcoin, as the cryptocurrency market leader, often sets the tone for the entire cryptocurrency market. By using Bitcoins trend direction as a barometer for overall market conditions, we create a system where capital is not allocated during unfavorable or bearish market conditions - significantly reducing exposure to downside risk.
Users have the ability to toggle this filter on and off in the input menu, with five customizable options for the trend filter, including the option to use no filter. These options are:
Nova QSM - a trend aggregate combining the Rolling VWAP, Wave Pendulum Trend, KRO Overlay, and the Pulse Profiler provides the market trend signal confirmation.
Kilonova QSM - a versatile aggregate combining the Rolling VWAP, KRO Overlay, the KRO Base, RSI Volatility Bands, NNTRSI, Regression Smoothed RSI and the RoC Suite.
Quasar QSM - an enhanced version of the original RSI Pulsar. The Quasar QSM refines the trend following approach by utilizing an aggregated methodology.
Pairwise Momentum and Strength Ranking
The backbone of this system is its ability to identify the strongest-performing asset in the selected pool, ensuring that the portfolio is always exposed to the asset showing the highest relative momentum. The system continually ranks these assets against each other and determines the highest performer by measure of past and coincident outperformance. This process occurs rapidly, allowing for swift responses to shifts in market momentum, which ensures capital is always working in the most efficient manner. The speed and precision of this reallocation strategy make the script particularly well-suited for active, momentum-driven portfolios.
Beta-Adjusted Asset Selection as a Tiebreaker
In the circumstance where two (or more) assets exhibit the same relative momentum score, the system introduces another layer of analysis. In the event of a strength ‘tie’ the system will preference maintaining the current position - that is, if the previously strongest asset is now tied, the system will still allocate to the same asset. If this is not the case, the asset with the higher beta is selected. Beta is a measure of an asset’s volatility relative to Bitcoin (BTC).
This ensures that in bullish conditions, the system favors assets with a higher potential for outsized gains due to their inherent volatility. Beta is calculated based on the Average Daily Return of each asset compared to BTC. By doing this, the system ensures that it is dynamically adjusting to risk and reward, allocating to assets with higher risk in favorable conditions and lower risk in less favorable conditions.
Dynamic Asset Reallocation - Opposed to Multi-Asset Fixed Intervals
One of the standout features of this system is its ability to dynamically reallocate capital. Unlike traditional portfolio allocation strategies that may rebalance between a basket of assets monthly or quarterly, this system recalculates and reallocates capital on the next bar close (if required). As soon as a new asset exhibits superior performance relative to others, the system immediately adjusts, closing the previous position and reallocating funds to the top-ranked asset.
This approach is particularly powerful in volatile markets like cryptocurrencies, where trends can shift quickly. By reallocating swiftly, the system maximizes exposure to high-performing assets while minimizing time spent in underperforming ones. Moreover, this process is entirely automated, freeing the trader from manually tracking and measuring individual token strength.
Our research has demonstrated that, from a risk-adjusted return perspective, concentration into the top-performing asset consistently outperforms broad diversification across longer time horizons. By focusing capital on the highest-performing asset, the system captures outsized returns that are not achievable through traditional diversification. However, a more risk-averse investor, or one seeking to reduce drawdowns, may prefer to move the portfolio further left along the theoretical Capital Allocation Line by incorporating a blend of cash, treasury bonds, or other yield-generating assets or even include market neutral strategies alongside the rotation system. This hybrid approach would effectively lower the overall volatility of the portfolio while still maintaining exposure to the system’s outsized returns. In theory, such an investor can reduce risk without sacrificing too much potential upside, creating a more balanced risk-return profile.
Position Changes and Fees/Slippage
Another critical and often overlooked element of this system is its ability to account for fees and slippage. Given the increased speed and frequency of allocation logic compared to the buy-and-hold strategy, it is of vital importance that the system recognises that switching between assets may incur slippage, especially in highly volatile markets. To account for this, the system integrates realistic slippage and fee estimates directly into the equity curve, simulating expected execution costs under typical market conditions and gives users a more realistic view of expected performance.
Number of Position Changes
Understanding the number of position changes in a strategy is critical to assessing its feasibility in real world trading. Frequent position changes can lead to increased costs due to slippage and fees. Monitoring the number of position changes provides insight into the system’s behavior - helping to evaluate how active the strategy is and whether it aligns with the trader's desired time input for position management.
Equity Curve and Performance Calculations
To provide a benchmark, the script also generates a Buy-and-Hold (or "HODL") equity curve that represents an equal split across the four selected assets. This allows users to easily compare the performance of the dynamic rotation system with that of a more traditional investment strategy.
The script tracks key performance metrics for both the dynamic portfolio and the HODL strategy, including:
Sharpe Ratio
The Sharpe Ratio is a key metric that evaluates a portfolio’s risk-adjusted return by comparing its ‘excess’ return to its volatility. Traditionally, the Sharpe Ratio measures returns relative to a risk-free rate. However, in our system’s calculation, we omit the risk-free rate and instead measure returns above a benchmark of 0%. This adjustment provides a more universal comparison, especially in the context of highly volatile assets like cryptocurrencies, where a traditional risk-free benchmark, such as the usual 3-month T-bills, is often irrelevant or too distant from the realities of the crypto market.
By using 0% as the baseline, we focus purely on the strategy's ability to generate raw returns in the face of market risk, which makes it easier to compare performance across different strategies or asset classes. In an environment like cryptocurrency, where volatility can be extreme, the importance of relative return against a highly volatile backdrop outweighs comparisons to a risk-free rate that bears little resemblance to the risk profile of digital assets.
Sortino Ratio
The Sortino Ratio improves upon the Sharpe Ratio by specifically targeting downside risk and leaves the upside potential untouched. In contrast to the Sharpe Ratio (which penalizes both upside and downside volatility), the Sortino Ratio focuses only on negative return deviations. This makes it a more suitable metric for evaluating strategies like the Adaptive Pairwise Momentum Strategy - that aim to minimize drawdowns without restricting upside capture. By measuring returns relative to a 0% baseline, the Sortino ratio provides a clearer assessment of how well the system generates gains while avoiding substantial losses in highly volatile markets like crypto.
Omega Ratio
The Omega Ratio is calculated as the ratio of gains to losses across all return thresholds, providing a more complete view of how the system balances upside and downside risk even compared to the Sortino Ratio. While it achieves a similar outcome to the Sortino Ratio by emphasizing the system's ability to capture gains while limiting losses, it is technically a mathematically superior method. However, we include both the Omega and Sortino ratios in our metric table, as the Sortino Ratio remains more widely recognized and commonly understood by traders and investors of all levels.
Case Study
Notes
For the sake of brevity, the Important Notes section found in the header of this text will not be rewritten. Instead, it will be highlighted that now is the perfect time to reread these notes. Reading this case study in the context of what has been mentioned above is of key importance.
As a second note, it is worth mentioning that certain market periods are referred to as either “Bull” or “Bear” markets - terms I personally find to be vague and undefinable - and therefore unfavorable. They will be used nevertheless, due to their familiarity and ease of understanding in this context. Substitute phrases could be “Macro Uptrend” or “Macro Downtrend.”
Overview
This case study provides an in-depth performance analysis of the Adaptive Pairwise Momentum System , a long-only system that dynamically allocates to outperforming assets and moves into cash during unfavorable conditions.
This backtest includes realistic assumptions for slippage and fees, applying a 0.5% cost for every position change, which includes both asset reallocation and moving to a cash position. Additionally, the system was tested using the top four cryptocurrencies by market capitalization as of the test start date of 01/01/2022 in order to minimize selection bias.
The top tokens on this date (excluding Stablecoins) were:
Bitcoin
Ethereum
Solana
BNB
This decision was made in order to avoid cherry picking assets that might have exhibited exceptional historical performance - minimizing skew in the back test. Furthermore, although this backtest focuses on these specific assets, the system is built to be flexible and adaptable, capable of being applied to a wide range of assets beyond those initially tested.
Any potential lookahead bias or repainting in the calculations has been addressed by implementing the lookback modifier for all repainting sensitive data, including asset ratios, asset scoring, and beta values. This ensures that no future information is inadvertently used in the asset allocation process.
Additionally, a fixed lookback period of one bar is used for the trend filter during allocations - meaning that the trend filter from the prior bar must be positive for an allocation to occur on the current bar. It is also important to note that all the data displayed by the indicator is based on the last confirmed (closed) bar, ensuring that the entire system is repaint-proof.
The study spans the 2022 cryptocurrency bear market through the subsequent bull market of 2023 and 2024. The stress test highlights how the system reacted to one of the most challenging market downturns in crypto history - which includes events such as:
Luna and TerraUSD crash
Three Arrows Capital liquidation
Celsius bankruptcy
Voyager Digital bankruptcy
FTX collapse
Silicon Valley + Signature + Silvergate banking collapses
Subsequent USDC deppegging
And arguably more important, 2022 was characterized by a tightening of monetary policy after the unprecedented monetary easing in response to the Covid pandemic of 2020/2021. This shift undeniably puts downward pressure on asset prices, most probably to the extent that this had a causal role to many of the above events.
By incorporating these real-world challenges, the backtest provides a more accurate and robust performance evaluation that avoids overfitting or excessive optimization for one specific market condition.
The Bear Market of 2022: Stress Test and System Resilience
During the 2022 bear market, where the overall crypto market experienced deep and consistent corrections, the Adaptive Pairwise Momentum System demonstrated its ability to mitigate downside risk effectively.
Dynamic Allocation and Cash Exposure:
The system rotated in and out of cash, as indicated by the gray period on the system equity curve. This allocation to cash during downtrending periods, specifically in late 2022, acted as the systems ‘risk-off’ exposure - the purest form of such an exposure. This prevented the system from experiencing the magnitude of drawdown suffered by the ‘Buy-and-Hold (HODL) investors.
In contrast, a passive HODL strategy would have suffered a staggering 75.32% drawdown, as it remained fully allocated to chosen assets during the market's decline. The active Pairwise Momentum system’s smaller drawdown of 54.35% demonstrates its more effective capital preservation mechanisms.
The Bull Market of 2023 and 2024: Capturing Market Upside
Following the crypto bear market, the system effectively capitalized on the recovery and subsequent bull market of 2023 and 2024.
Maximizing Market Gains:
As trends began turning bullish in early 2023, the system caught the momentum and promptly allocated capital to only the quantified highest performing asset of the time - resulting in a parabolic rise in the system's equity curve. Notably, the curve transitions from gray to purple during this period, indicating that Solana (SOL) was the top-performing asset selected by the system.
This allocation to Solana is particularly striking because, at the time, it was an asset many in the market shunned due to its association with the FTX collapse just months prior. However, this highlights a key advantage of quantitative systems like the one presented here: decisions are driven purely from objective data - free from emotional or subjective biases. Unlike human traders, who are inclined (whether consciously or subconsciously) to avoid assets that are ‘out of favor,’ this system focuses purely on price performance, often uncovering opportunities that are overlooked by discretionary based investors. This ability to make data-driven decisions ensures that the strategy is always positioned to capture the best risk-adjusted returns, even in scenarios where judgment might fail.
Minimizing Volatility and Drawdown in Uptrends
While the system captured substantial returns during the bull market it also did so with lower volatility compared to HODL. The sharpe ratio of 4.05 (versus HODL’s 3.31) reflects the system's superior risk-adjusted performance. The allocation shifts, combined with tactical periods of cash holding during minor corrections, ensured a smoother equity curve growth compared to the buy-and-hold approach.
Final Summary
The percentage returns are mentioned last for a reason - it is important to emphasize that risk-adjusted performance is paramount. In this backtest, the Pairwise Momentum system consistently outperforms due to its ability to dynamically manage risk (as seen in the superior Sharpe, Sortino and Omega ratios). With a smaller drawdown of 54.35% compared to HODL’s 75.32%, the system demonstrates its resilience during market downturns, while also capturing the highest beta on the upside during bullish phases.
The system delivered 266.26% return since the backtest start date of January 1st 2022, compared to HODL’s 10.24%, resulting in a performance delta of 256.02%
While this backtest goes some of the way to verifying the system’s feasibility, it’s important to note that past performance is not indicative of future results - especially in volatile and evolving markets like cryptocurrencies. Market behavior can shift, and in particular, if the market experiences prolonged sideways action, trend following systems such as the Adaptive Pairwise Momentum Strategy WILL face significant challenges.
Stock vs Custom Symbol OutperformanceStock vs Custom Symbol Outperformance" is a powerful technical analysis indicator designed to help traders and investors gauge the relative performance of a stock against a selected benchmark symbol. This tool enables users to easily visualize how a stock is performing in comparison to another asset, such as an index or another stock.
Key Features:
Custom Symbol Comparison: Input any symbol to compare against the stock of interest, allowing for flexible analysis tailored to specific market conditions.
Outperformance Calculation: The indicator calculates the percentage change in price for both the stock and the selected benchmark, providing a clear view of relative performance.
Moving Average Smoothing: A customizable moving average smooths the outperformance data, helping to identify trends and reduce noise in the signals.
Threshold Lines: Set upper and lower threshold lines to visualize significant levels of outperformance or underperformance, aiding in decision-making.
Dynamic Color Coding: The outperformance bars are color-coded—green indicates that the stock is outperforming the benchmark, while red indicates underperformance.
How to Use:
Select a Benchmark: Use the input field to choose the symbol against which you want to compare the stock.
Adjust Parameters: Modify the moving average length and set your desired thresholds for easier identification of performance metrics.
Interpret Results: Analyze the plot for insights into the stock's performance relative to the benchmark, with the moving average providing additional context for trends.
This indicator is ideal for traders looking to refine their strategies by understanding how individual stocks measure up against key benchmarks in the market.
CANSLIM IBD Relative Strength NIFTYSMLCAP250 (Daily & Weekly)This Pine Script (written in version 5) is designed to calculate the IBD Relative Strength for both daily and weekly timeframes, comparing the current chart's security to the NIFTY SMLCAP 250 index. Here's a breakdown of the code:
1. Indicator Initialization: This line sets up the indicator with both a short and full title. The overlay=true means the plot will be drawn on top of the price chart.
2. Fetching Data: This fetches the daily ("D") and weekly ("W") close prices for the NIFTY SMLCAP 250 index.
3. Relative Strength Calculation: Relative strength is calculated as the ratio of the security's current close price to the close price of the NIFTY SMLCAP 250, multiplied by 100 for both daily and weekly timeframes.
4. Timeframe-Based Selection: Here, the script checks whether the chart is in daily or weekly mode and selects the corresponding relative strength value.
5. Scaling with Multiplier: This section ensures there are at least 60 bars of data and scales the relative strength by using a multiplier derived from the 60th previous bar's close price.
6. Plotting: Finally, the scaled relative strength is plotted on the chart in black.
Improvements :
Dynamic Timeframe Handling: You might want to extend this for other timeframes, e.g., monthly.
Customization: You can add user input parameters to adjust the timeframe, scale factor, or period dynamically.
Color Enhancements: You can add color variation to indicate strength/weakness more clearly.