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.
RS
Relative Strength (Volatility Adjusted)The volatility adjusted relative strength indicator offers a more precise approach to traditional RS indicators by incorporating volatility adjustments into its calculations. This will provide traders with a more nuanced view of relative performance between a selected instrument and a comparison index.
Identifying Relative Strength (RS) and Weakness (RW) against a benchmark like the SPY is crucial for traders, as it highlights institutional activity in an equity, which retail traders rarely achieve on their own. However, the traditional method of simply comparing the rate of change of a stock to the rate of change for the SPY can be flawed. This method often fails to account for the inherent volatility of each stock, leading to misleading RS/RW readings.
Consider two stocks that both move in response to SPY's movements. If SPY moves significantly more than its average (measured by its ATR), and the stock does the same, traditional RS calculations might show strength when, in fact, the stock is just mirroring SPY's increased volatility. For instance, if SPY typically moves $0.25 an hour but suddenly moves $1, and a stock typically moves $0.50 but moves $2, the stock's apparent RS might be overstated, when in reality there is no relative strength for the stock.
By adjusting for volatility using the ATR (Average True Range), we normalize these movements and get a clearer picture of true RS/RW. For example, if SPY moves 5 times its average rate and a stock moves the same multiple of its own ATR, the RS should be considered neutral rather than strong. Similarly if a stock in absolute terms moves $1 while the SPY also moves $1 but the stock usually moves at twice the rate of the SPY, the stock should be considered relatively weak - not neutral.
Usage
Use this to identify stocks with actual strength or weakness compared to the market.
When the RS line is above 0 and above the moving average it indicates a stock with relative strength that is still gaining more strength.
When the RS line is above 0 but above the moving average it indicates a stock with relative strength that is currently losing strength.
When the RS line is below 0 and below the moving average it indicates a stock with relative weakness that is still losing strength.
When the RS line is below 0 but above the moving average it indicates a stock with relative weakness that is starting to gain back some strength.
Anchored Relative StrengthThe Anchored Relative Strength (RS) Indicator is a tool designed for traders to compare the performance of a selected stock or security against a benchmark index or another security starting from a specific point in time.
Traditional Relative Strength
The traditional RS line is a popular tool used to compare the performance of a stock, typically calculated as the ratio of the stock's price to a benchmark index's price. It helps identify outperformers and underperformers relative to the market or a specific sector.
The Anchored Approach
The Anchored RS line enhances the traditional concept of the RS line by introducing an anchored approach, where calculations begin from a user-defined date. This feature provides the flexibility to start the comparison from a specific historical event, earnings, market peak, trough, or any date significant to the trader's analysis.
Calculating Relative Strength
The RS value is calculated by dividing the close price of the chosen stock by the close price of the comparative symbol (SPX by default). This calculation is performed for each bar since the Anchor Date.
Indicator Features
🔶Custom Start Date
🔶Custom Comparison Symbol
🔶RS Line Moving Average
🔶Comparison Symbol Line
🔶Customize Colors & Appearance
Users can change the anchor date simply by clicking on the indicator and dragging the anchor point.
Webby's Quick & Grateful Dead RSWebby's Quick & Grateful Dead RS combines a Relative Strength Line and Moving Averages to help traders hold a core position in a winning stock by identifying moments of strength and weakness in a stocks advance.
The Relative Strength (RS) line is something many investors are familiar with. It is used to measure a stocks performance versus the S&P 500 (default setting) and is typically calculated by dividing the closing price of the stock by the closing price of the S&P. This means if a stock moves up and the S&P moves down or the stock moves up more than the S&P the RS line will increase, if the stock moves down while the S&P moves up the line will decrease.
While the RS Line by itself is a powerful tool, adding moving averages to the RS line can help better understand trends. This work was done by Mike Webster (Webby) as he tried to reverse engineer how William O'Neil was able to hold some of his biggest winning positions.
This indicator plots the RS line along with two moving averages and clearly labels and alerts the 3 signals shared by Webby:
Quick Break - RS line crosses below the fast moving average
Quicksand - RS line moves lower than it was at the time of the Quick Break
Grateful Dead Break - RS line crosses below the slow moving average
To ensure your chart doesn't get skewed, please use the multiplier in the setting to adjust the vertical offset of the RS line and moving averages.
RedK Relative Strength Ribbon: RS Ribbon and RS ChartsRedK Relative Strength Ribbon (RedK RS_Ribbon) is TA tool that plots the Relative Strength of the current chart symbol against another symbol, or an index of choice. It enables us to see when a stock is gaining strength (or weakness) relative to (an index that represents) the market, and when it hits new highs or lows of that relative strength, which may lead to better trading decisions.
I searched TV for existing RS indicators but didn't find what I really wanted, so I put this together and added some additional features for my own use. It started as a simple RS line with new x-weeks Hi/Lo markers, then evolved into what you see here in v1.0 with the ability to plot a full RS chart in regular or HA candle types. Hope this will be useful to some other growth traders here on TV.
What is Relative Strength (RS)
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(RS is a comprehensive concept in TA, below is a quick summary - please research further if it's not already a familiar topic)
Relative Strength (RS) is a technical concept / indicator used mainly by growth / swing / momentum traders to compare the performance of one security or asset against another. RS measures the price performance of a specific security relative to a benchmark, such as an index or another asset. It's not to be confused with the famous Relative Strength Index (RSI) technical indicator
For example, In the context of comparing a stock's relative strength to the SPY (S&P 500) index, the relative strength calculation involves dividing the stock's price or price-related value (e.g., close price) by the corresponding value of the SPY index. The resulting ratio (and its trend over time) indicates the relative performance of the stock compared to the index.
Traders and investors use relative strength analysis to identify securities that have been showing relative strength or weakness compared to a benchmark, which can help in making investment decisions or identifying the "market leaders" and potential trading opportunities.
There are so many books and documentation about the RS concept and its importance to identify market leaders, especially when recovering from a bear market - if you're interested in the concept, please search more about it and review some of that literature. There's also a more detailed definition of Relative Strength in this article on Invstopedia
RedK RS_Ribbon features and options
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The indicator settings provide many options and features - see the settings box below
- Change / choose base symbol
The default is to use SPY as the base symbol - so we're comparing the chart's symbol to a proxy of the S&P 500 - Some traders may prefer to use the QQQ - or other index or ETF that acts as a proxy for the industry / sector / market they are trading
- RS Calculation / RS line
we use the simple form of the RS calculation,
RS = closing price of current chart symbol / closing price of the base symbol (default is SPY) * 100
some RS documentation will use the Rate of Change (RoC) - but that's not what we're using here.
- The RS_Ribbon
* Once the RS line is plotted, it made sense to add couple of moving averages to it, to make it easier to observe the trend of the RS and the changes in that trend as you can see in the sample chart on top.
* The RS_Ribbon is made up of a fast and slow moving averages and will change color (green / red) based on detected trend RS direction - the 2 MA types and lengths can be changed until you get the setup that provides the best view for you of the RS trend over time. My preferred settings are used as defaults here.
- Identifying New (x)Week Hi/Lo RS Values
* Most traders would be interested when the calculated RS hits a new 52-week high or low value.
* There are cases where we may want to see when a new RS Hi/Lo has been hit for a different period - for example, a quarter (13 weeks)
* the number of weeks can be changed as well as adjusting the numbers of trading days per week (if needed for certain symbols/exchanges)
- Working with Different Timeframes
* Now these "markers" will only be available in the daily and weekly timeframes and there is a good reason for that, it's not the fact that i'm lazy :) and that enabling this in timeframes lower than 1D would have been some heavy lifting, but the reality is that with RS, we're really interested if a "day's close" hits a new RS high or low value against the moving window of x weeks (and the weeks close also) - if you think of this more, at lower TF, RS can hit a lower value that never end up registering on the daily closing and that causes a lot of visual confusion. So i took the "cleaner way out" of that issue.
* note that you can choose a different timeframe for the RS_Ribbon than the chart - if you do, please make sure the chart is at a lower timeframe than the indicator's - (and in that case remember to hide the candles because they won't make much sense)
i wanted to leverage TV's built-in multi-Timeframe (MTF) support with the caveat that using the indicator at lower TF with a chart at a higher TF (example chart at 1Wk and indicator at 1D) will show inaccurate results. If this sounds confusing, keep the indicator TF same as the chart.
the example here shows a 2-Hr chart against 1D RS_Ribbon
- Using RS Charts and RS Candles
* Beside the ability to plot the RS "closing" value with the RS line, the indicator provides the ability to show a "full" RS Chart with candles that represent the relative values of open, high, low. and close against the base symbol.
* the RS Charts can be used for regular chart analysis, for example, we can identify common chart patterns like Cup & Handle, VCP, Head & Shoulder..etc using these charts .. which can provide some edge over the price charts
* for the Heikin Ashi fans, I added the ability to choose classic or HA candles for the chart. note you have to enable the option to show the RS candles first before you choose the option to switch to HA.
The chart below shows a side-by-side comparison on the 2 RS chart types
Closing remarks
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* RS is a good way to identify market/sector leaders (who will usually recover from a bear market before others) - and enable us to see the strength that comes from the broader makrket versus the one that comes from the stock's own performance and identify good trading opportunities
* I'll continue to update this work and alerts will come in next version - but wanted to check initial reaction and value
* as usual, if you decide to use this in your chart analysis, it's necessary to combine with other momentum, trend, ...etc indicators and do not make trading decision only based on the signales from a single indicator
Webby's RS LineThe Relative Strength (RS) line is something many investors are familiar with. It is used to measure a stocks performance versus the S&P 500 and is typically calculated by dividing the closing price of the stock by the closing price of the S&P. This means if a stock moves up and the S&P moves down or the stock moves up more than the S&P the RS line will increase, if the stock moves down while the S&P moves up the line will decrease.
While the standard RS line is a powerful tool, Mike Webster recently discussed how he has made changes to the standard RS line and also uses a 21 exponential moving average of the RS line to help guide his decision making. This script puts those new twists on the standard RS line, by first calculating the RS line using the low of both the security and the S&P rather than the closing prices. Next it measures the 21-day exponential moving average of the RS line and plots the distance between the two as a histogram.
A strong trending stock that is out performing the market will see an extended period of a positive blue histogram signifying the RS line is above the 21-ema.
While on the other hand a stock in a downtrend that is underperforming will see a negative red histogram a red histogram signifying the RS line is below the 21-ema.
On top of all of that, the indicator also keeps 3 & 13 exponential moving average of the distance between the RS line and the 21 ema to help identify shorter term relative strength and capture more immediate shifts in momentum. Both of those are plotted on the histogram as well and will change color as they rise and fall making it easy to spot the direction.
Indicator options include:
Choose symbol to measure performance against
Change histogram colors
Choose ema line width
* Note this indicator does not plot the actual RS line, it is the histogram representing the distance between the RS line calculated using the lows and the 21 ema, as well as the two ema's of the relationship.
RS Momentum singleThe RS Momentum single Symbol indicator is a custom indicator that compares the performance of a specific symbol to a base symbol and calculates the relative strength (RS) and relative momentum (RM) between them. The indicator is designed to help traders identify the current market phase of the symbol and make informed trading decisions based on the relative performance.
Description:
The indicator calculates the RS and RM values using the following steps:
1. It retrieves the closing prices of the symbol and the base symbol.
2. It calculates the Symbol-to-Base Ratio (SBR) by dividing the closing price of the symbol by the closing price of the base symbol.
3. It calculates two Simple Moving Averages (SMAs) of the SBR with different lengths (RS1 and RS2) and computes the RS value as a percentage difference between these SMAs.
4. It calculates two SMAs of the RS value with different lengths (RM1 and RM2) and computes the RM value as a percentage difference between these SMAs.
5. The indicator plots the RS and RM values on the chart and assigns a market phase label based on their values.
Usage:
The indicator can be used to identify the current market phase of the symbol, which can be one of the following:
1. Leading: The symbol is outperforming the base symbol, and the momentum is positive. This phase indicates a strong bullish trend, and traders might consider entering long positions.
2. Weakening: The symbol is outperforming the base symbol, but the momentum is negative. This phase suggests that the bullish trend is losing strength, and traders might consider taking profits or tightening their stop losses.
3. Lagging: The symbol is underperforming the base symbol, and the momentum is negative. This phase indicates a strong bearish trend, and traders might consider entering short positions.
4. Improving: The symbol is underperforming the base symbol, but the momentum is positive. This phase suggests that the bearish trend is losing strength, and traders might consider closing short positions or looking for potential long entries.
Optimal Settings:
The optimal settings for the indicator depend on the specific market and trading style. However, the default settings (RS1 Length = 10, RS2 Length = 30, RM1 Length = 1, RM2 Length = 9) can be a good starting point. Traders can experiment with different settings find the ones that work best for their trading strategy and market conditions.
It's important to note that this indicator should be used in conjunction with other technical analysis tools and market context to make well-informed trading decisions. No single indicator can guarantee success in trading, and it's crucial to use a combination of tools and techniques to manage risk and maximize potential returns.
RS RatingHello everyone.
The RS Rating (or Relative Strenght Rating) is a metric that tracks a stock's price performance relative to the rest of the market. Specifically, it looks at a stock's relative strength over the last 52 weeks.
It allows you to identify at a glance stocks that are outperforming the market and may be poised for further gains.
Designed for break-out traders, trend follower, value investors, the RS Rating can help you identify promising opportunities and make informed investment decisions.
The Rating stands as follow:
- From 1 (worst) to 99 (best)
- 99 rating means the stock is outperforming 99% of all stocks in terms of relative share price performance over the last 52 weeks.
The RS Rating is accompanied by the RS line which is a representation of the progress of the asset against the comparative symbol. (Here SP500)
Of course this script is inspired by the IBD rating system.
The results may be equivalent but it is not guaranteed.
This indicator proposes a scoring system in the style of the one proposed by IBD.
Indeed for an optimal result, it would be necessary to compare the relative performance of all actions, which is not yet possible on PineScript.
Here is the formula for calculating the score:
RS Score = 40% * P3 + 20% * P6 + 20% * P9 + 20% * P12
With
P3 = Performance over the last 3 months
P6 = Performance over the last 6 months
P9 = Performance over the last 9 months
P12 = Performance over the last 12 months
There is no equivalent solution for the moment on TradingView.
The rating score will only appear on the daily timeframe.
For now it's my pleasure to share!
Quad RSRelative Strength (RS) is an Indicator which measures a Stock's performance as compared to a Benchmark Index or another Stock.
For example: RS will tell you whether “A” is increasing more or less than “B” in any market condition. It is one of the tools which is best suited for Momentum Investing.
How RS can be used as a Momentum Indicator:
RS is used in identifying both the strongest and the weakest stock, or any asset class, within the market. Usually, the stocks which display strong or weak RS over a given time period tend to continue to move in the same direction.
How to calculate Relative Strength:
Divide change of "A" over some time period by the change of a particular index/stock "B" over the same time period.
This indicator oscillates around zero. If the value is greater than zero, "A" has been relatively strong compared to "B", during the selected period; if the value is less than zero, "A" has been relatively weak.
Configuration & Default settings:
The Relative symbol can be Input, default is Nifty50.
Time frame can be set, I recommend setting to Day. Default time frame is set to same as chart.
Four different periods can be set. Default values are 500, 250, 125 & 63. If time frame is set as 'Day', these numbers correspond to 2 years, 1 year, 1/2 year & 1 quarter.
Example chart: NiftyMidCap100 with Quad RS indicator with Nifty50 used as Relative Symbol, Four periods: 500, 250, 125 & 63
[TTI] Combined Absolute Relative Strength - ARS toolHISTORY AND CREDITS–––––––––––––––––––––––––––––––––––––––––––––––––––––––
I got inspired to build this based on some public lectures I have seen of Matt Caruso. Matt says he has taken 10 years to build similar tool. The idea of a 'better' Relative Strength hit home and I cracked open the textbooks to see which technique would serve best. I think I have made a very close (my estimate about 90%) script to the original. Examples of side by side in comments.
WHAT IT DOES––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
💡A significant advancement in relative strength analysis is Combined Adaptive Relative Strength (ARS tool).
The ARS tool makes it quick and easy to determine whether an asset exhibits Relative Strength and is therefore subject to institutional accumulation.
ARS is not restricted to equities and may be used to find RS on any traded security like crypto, forex, bonds or ETFs. By design, ARS adjusts to a security's volatility to discover RS in a slower-moving, dividend-paying investment just as easily as in a one with strong velocity. Due to this feature, investors are able to use RS analysis on any security type that fits their objectives and risk tolerance.
When the indicator calculates a favourable, strong relative strength in the ticker it paints the background of the chart to the chosen color.
🎁 Unlike the original indicator, I have left a few customisable settings for those who wish to toggle the sensitivity:
✅. You can choose which index you compare Relative Strength against (perfect for anyone trading international)
✅. You can choose how manyDays Lookback the ticker uses to make calculations
✅. You can chooses what Timeperiod in number of bars the ticker uses to calculate Relative Strength
✅. I have made all calculations adaptable for larger and smaller timeframes (so wether you are daytrader or investor this will adapt to the way you have customised your chart).
HOW TO USE IT–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The tool highlights the periods of time when the ticker has the highest probability of attracting institutional investors and hence result in price appreciation. The blue color appears in stages of the indicator where significant upward moves are probable.
You can use the indicator as part of the longer term trend analysis of your research.
Artharjan Market AnalysisHi,
I have created Artharjan Market Analysis dashboard to help traders to take complete view of the stocks of a particular sector or a benchmark index and track them simultaneously.
With this indicator dashboard, traders will be able to track 13 scripts simultaneously. This dashboard has following features and will help gain loads of valuable information during intraday as well as positional trading.
Information provided:
1] Traders will be able to track 13 scripts of their choice and get real time Buy/Sell Signals
2] Traders will be able to chose the timeframe of their choice by changing the setting called "Timeframe" OR keep the timeframe as that on the chart by keeping the Timeframe = "Chart".
3] Traders will be able to adjust the thickness of the Moving Averages Plotted on the Chart
4] Traders will be able to select the Table position and Table Text Size.
5] For volume analysis select a separate Lookback period for Daily/Weekly/Monthly timeframes and a separate Lookback period for Intraday timeframe. You may keep both same as per your choice.
6] Plot smoothed RSI (WMA of closing price used as an input for RSI) . Default smoothing used is 5. But if you dont want to use smoothing then set it to 1 and RAW RSI will be plotted.
7] For plotting RSI select a separate Lookback period for Daily/Weekly/Monthly timeframes and a separate Lookback period for Intraday timeframe. You may keep both same as per your choice.
8] For RSI set the Overbought and Oversold Levels of your choice.
9] Similarly user will be able to set its own timeframe for calculating Elders Force Index and Commodity Channel Index, and also set the Overbought and Oversold Levels of your choice.
10] Traders will have a choice to monitor Stock Price with reference to 3 Super Trend indicators based on 3 different parameters of their choice.
11] To calculate the Relative Strength and Moving Average High/Low Bands I have used the lookback period of 55 and used RMA instead of SMA or EMAs since I found that RMAs are more reliable than SMA or EMAs.
12] To measure the relative strength of a Stock w.r.t. a Benchmark Index or a Sectoral Index, user will have to select the RS - Comparative Symbol. This Comparative Symbol (Script) will be used to measure the relative strength of all the 13 scripts.
13] Kindly note that since this Dashboard will monitor 13 scripts simultaneously it will occupy huge space on the chart, hence I have made a provision to select the number of scripts to be shown on the dashboard minimum is 1 and max is 13.
14] With this indicator you will be able to monitor the price action and following indicators.
a) Last Traded Price
b) Price Change (Between Current candle and previous candle of the selected timeframe)
c) Price Change Percentage (Between Current candle and previous candle of the selected timeframe)
d) Volume Change (Between Current candle and previous candle of the selected timeframe)
e) Volume vs. SMA(Volume) with different color shaded ranging from -ve values to 100%, 100% to 200%, 200% to 500% and more than 500%
f) If Price is above VWAP then its a Buy else its a Sell signal
g) Signals based on RSI values and its corresponding relation with Overbought and Oversold Levels -such as Bullish, Bearish, Long Unwinding, Short Covering, Long Buildup, Short Buildup, Neutral levels
h) 3 Supertrend Indicators
i) Central Pivot Range (Calculated on a Daily Timeframe) - If LTP > CPR = Bullish, LTV < CPR = Bearish else Neutral
j) Elders Force Index - If EFI > 0 Buy if EFI < 0 Sell
k) Signals based on CCI values and its corresponding relation with Overbought and Oversold Levels -such as Bullish, Bearish, Long Unwinding, Short Covering, Long Buildup, Short Buildup, Neutral levels
l) Moving Average Envelop of 55 RMA calculated on Highs and Lows. If Low > Upperband = Bullish, if High < Lowerband = Bearish else Neutral
m) Relative Strength (RS). If RS of a Script in comparison to the Comparative Symbol is positive then it will shown in Green else it will be shown in Red color.
Kindly note that for Index scripts have got no volume so all indicators (Volume, SMA(Volume), VWAP and EFI) which require Volume as an Input parameter will be shown in Gray color because there is no volume data available to calculate these Indicator values and determine whether the Index is in Bullish Territory or in Bearish territory.
I hope you would enjoy using this indicator and it will act as a light house in your trading journey.
Warm regards
Rahul Desai
@Artharjan
Relative Strength Exponential Moving Average [CC]The Relative Strength Exponential Moving Average was created by Vitali Apirine (Stocks and Commodities Jan 2022 pgs 22-25) and this is a handy moving average that combines a typical overbought/oversold mechanic with an overall trend indicator. Even though the typical length is so large it reacts extremely quickly when the stock becomes overbought or oversold. Because of this the indicator by itself doesn't work as well during choppy periods so Vitali recommends using a moving average crossover system during choppy so do one indicator with the default length of 50 and use a different length of 10 so when the shorter length crosses over the longer length then buy and vice versa you would sell. Generally speaking buy when the line turns green and sell when it turns red. I have used strong buy and sell signals in addition to normal signals so strong signals are darker in color and normal signals are lighter in color.
Let me know if there are any other scripts or indicators you would like me to publish!
Relative StrengthPowerful tool to calculate and display the strength of a security compared to another security.
Some Main purposes are:
- finding new leadership in a market correction
- comparing a market leader with a top competitor
- tracking rotation in the market
.. and so much more!
This tool is highly configurable, you can especially change:
- The reference symbol (SPY, QQQ, BTCUSD, ...)
- The time span to indicate a new High or Low in a certain time-frame
- Factorize your RS-Chart to make it fit to the original chart. (Moves the chart up or down)
- Option to repaint your candles / bars when a new RS High occurs in the given timeframe.
Enjoy and have a great day!
Powerful_Trading
Relative Strength Ratio Chart + Relative Volume Gradient CandlesThe purpose of the Comparative Relative Strength Ratio indicator is to provide a way of looking at a relative strength ratio as a candle graph instead of only a closing price line, as well as to provide relative volume gradient coloration on the ratio-generated candles, and additionally to plot moving averages of the CRS ratio that can help display shifting trends in relative strength.
This is different from my Relative Volume Gradient Paintbars indicator, as well as my Comparison Chart with Relative Volume Gradient Paintbars indicator, in that the first looks at the charted symbol itself, the second looks at an alternate symbol, and this third indicator looks at a ratio between the charted symbol and the alternate symbol.
The idea behind this indicator is to provide additional means of evaluating relative strength, such as comparing the moving averages of the comparative relative strength ratio graph to the charted stock symbol's own MAs in order to gauge strength, comparing the price action of the ratio to that of the individual stock and its index, and comparing the volume gradient signal between the ratio, the stock, and the index.
The unique volume features allow comparing volume as a percent of the index volume, as well as stock's candle range as a percent of the range of the index. So when the volume as a percentage of the index's overall volume becomes high, this can be made to highlight the candles.
Relative Strength Line by @iArpanKHello Traders!
I'm a Momentum Trader, following the Indian & US markets. Most of us are familiar with the Relative Strength (RS) indicator, popularized by Investor's Business Daily (IBD) and available on their MarketSmith platform. So, here I'm sharing a script that does the same and additionally pops an alert label when the RS line hits a new high (similar to Blue Dot appearance on MarketSmith charts).
User Settings
Inputs tab
Base Symbol : Symbol of the security/index with which you want to compare your current active symbol.
Period : Number of days since which you want to scan for a new high (default is 250 days, which approximately pops alerts for new 52 week high in RS). For example, if you want to look for new 10 days high in RS, set the Period to 10.
Style tab
RS Line : Change color using the palette provided (default is blue).
Alert Label : Show/hide alert labels by checking/unchecking the box. Change color using the palette provided. Change alert label symbol.
Precision : Default is two decimal places. Can be changed as per requirement.
Usage
The indicator consists of two components- the Relative Strength (RS) line & alert labels on new RS highs. Relative strength gives a measure of how the underlying security is performing with respect to a base index or security. For example, how is NSE:DIXON performing w.r.t NSE:NIFTY or how is NASDAQ:AAPL performing w.r.t. the TVC:SPX .
A rising RS line tells us that the underlying entity is outperforming the base entity. Similarly, a declining RS line shows under-performance of the underlying entity. A new high in RS (especially before a new high in price) often gives valuable information about the underlying security's strength w.r.t. the general market, and can tip us off to a possible breakout in the price in near future.
Making RS lists (list of stocks making new high in RS on heavy down days in index) can be very helpful to sort out leaders that are best resisting the decline and are likely to move up aggressively when the market turns favorable.
The concept of RS is extensively used by momentum traders and growth stock traders. When used in conjunction with price & volume action, this can be a very powerful tool in your trading arsenal. You can now easily spot RS trends and new highs visually by simply adding this indicator to your chart!
Conclusion
If you like this script, click on Add to favorite indicators , so that you can easily add this indicator from your favorites tab right away.
Thanks!
wMRS | Weighted-Mansfield Relative Strength - 4CR CUPThis version of Mansfield Relative Strength ( MRS ) weights the MRSs with different lookback periods by adding the weight of 2:1:1:1 to MRS (1Q) : MRS (2Q) : MRS (3Q) : MRS (4Q).
Typically, the lookback period of a MRS is reference to a full year, i.e. 260 trading dates or 52 weeks; to better represents the relative strength of a stock to a recent performance, someone suggested to add heavier weight on the most recent quarter MRS , i.e. MR(1Q) and the same weight to other quarters, namely, MRS (2Q), MRS (3Q), MRS (4Q).
For some of the stocks you may be interested was IPO not long ago, the lookback period is relaxed for customizing. Once you set the total lookback period, representing the 4Q, in the indicator, the other shorter lookback periods will be auto-calculated, i.e. 1Q, 2Q, 3Q.
A simple moving average of the wMRS is also added for your easier analysis on the trend development of the strength.
MRS | Mansfield Relative Strength - 4CR CUPThere are many investors referring to Relative Strength (RS) indicator published by Investor’s Business Daily (IBD) for their analysis. Since the RS published by IBD is a proprietary indicator, no exact formulation is published on it.
Many discussion suggested that an alternative to the IBD RS is the Mansfield Relative Strength .
There are 2 parameters for Mansfield Relative Strength setting, namely the market index and the lookback period, n. the default setting of Mansfield Relative Strength adopted by Stan Weinstein was “SPY” and “52” in weekly chart and “200” in daily chart .
Stan Weinstein used the Mansfield Relative Strength indicator on weekly charts. He suggested the breakouts out of a base had to go together with rising relative strength . The Mansfield RS needs to be rising and close to or above 0.
This version of Mansfield Relative Strength relaxes these input parameters for your own choice.
The market index can be set to other market index, e.g. NDX, DJI, NI255, MOEX , TAIEX , HSI , etc. and the lookback period is relaxed to integral input, e.g. 60, 90, 150, etc.
Mansfield Relative Strength
The Relative Strength indicator adopted by Stan Weinstein in his book: “Secrets For Profiting in Bull and Bear Markets” is formulated as Mansfield Relative Strength ( MRS ).
The formula of this indicator is based on the regular Dorsey RS (DRS):
DRS = Price_stock / Price_index
MRS = 100 * (DRS_today / sma (DRS, n)) - 1)
Where:
DRS = Dorsey Relative Strength
SMA = Simple moving average over n days.
The Mansfield Relative Strength formulates as the change of ratio of DRS to its own n-day moving average, this means:
MRS equals to 0 if the DRS is exactly equal to its n day moving average.
MRS is negative if the DRS is below its n day moving average.
MRS is positive if the DRS is above its n day moving average.
Using Mansfield Relative Strength
The MRS tells the relative price movement of the stock to the market index in a period of time concern. As with the Dorsey RS , you can use Mansfield RS to examine if a stock performs better than the market.
This indicator has the advantage over the Dorsey RS that in Dorsey RS only trend matters while for Mansfield RS the values whether below or above the 0 also matters. This allows us to screen for stocks with a MRS value above 0. When we see that the MRS is far above 0 and has been above 0 for some time, we have found a stock that outperforms the market heavily. We can buy this kinds of stock when dips occur.
RS.ROC | Relative Strength - Rate of Changes - 4CR CUPFor completeness of Relative Strength studies, the Relative Strength based on rate of changes (ROC) with weighting is coded and presented as well.
The RS.ROC is similar to the formulation of RS by IBD before rank among all the stocks in the market.
The lookback period is relaxed for customizing. Once you set the total lookback period, representing the 4Q, in the indicator, the other shorter lookback periods will be auto-calculated, namely, 1Q, 2Q, 3Q.
A simple moving average of the RS.ROC is also added for your easier analysis on the trend development of the strength.
To use it later at your charting later,
1. Favorite it;
2. Select from your favorite list.
TraderLion's Relative Strength LineRelative Strength Line
Introduction
The script adds a line/candlestick to your charts that shows how well a stock is acting relative to the Index. We call this Relative Strength Line.
Relative Strength ( RS ) separates leading stocks from laggards. Stocks showing RS during a market correction phase will often be the strongest movers once the general market is ready to cooperate.
Instructions on How To Add this Script to Your TradingView Charting Platform
Step 0: Head over to www.tradingview.com
Step 1: Add “TraderLion's Relative Strength Line” to your Favorites by clicking “Add to Favorite Scripts” near the bottom of the page.
Step 2: Click “Indicators” at the very top on TradingView. Under Favorites click “Relative Strength Line”
Step 3: Hover on the Indicator name ( Relative Strength Line) on your plot under legend and click the three dots at the very right. Under the “Pin To Scale” choose a setting that works best for you (optional).
Step 4: Done. You have now plotted the Relative Strength Line
Features
1) The Pink Dot symbolizes the RS Line reaching new highs before price. RS New Highs Before Price (RSNHBP) is often indicative of a break out emerging.
2) Direction-Based Relative Strength. The RS Line can be customized to color coat depending on its most recent direction. When the line moves up it will be blue, and on the way down pink. Easily glance and see phases of relative strength on the chart.
3) Raw RS Rating - The RS Line Script features an RS Rating from 1-99 with 99 being the strongest rating. The measures the stock’s performance relative to the Index you input.
3) Custom Index Input under Settings - requested feature!
4) Candlestick Relative Strength - A different unique way to view the Relative Strength Line
5) Alerts Conditions - Relative Strength New Highs and Relative Strength New Highs Before Price (RSNHBP)
RS Line - Gauge Performance vs IndexOverview:
This implementation of the RS Line mimics how Investor's Business Daily and CANSLIM investors measure growth stock performance versus the S&P 500.
If you are looking at a weekly chart, the RS Line is the performance of the stock over the past week versus the S&P 500 over that same time frame. The same logic applies to the daily and monthly charts, only the time frames are different.
If a stock moves up for the day/week/month and the S&P 500 does not, the RS Line will move up. If a stock ends the day/week/month flat, yet the S&P 500 moves up, the RS Line will go down.
Usage:
- Look for an upward sloping line.
- The steeper the line, the better.
- Can be used for viewing long-term trend.
Relative Strength ComparisonRelative Strength Comparison compares a security's price change with that of a "base" security or index.
You can change the "base" security from the indicator settings.
You can compare:
- Stock to other stock
- Stock to the benchmark index
- One index to another index
ElearnMarkets RSHow it works?
1. With this indicator you can compare any other symbol of index/security with selected symbol.
2. You can compare with three different Indices/symbols.
3. Also you can keep different timeframe and length of period to compare with the current symbol.
4. No need to add multiple indicators for same purpose.
Thanks,
Yogesh
IBD RS, Relative strengthRelative Strength calculation of 3 time periods: 12 months, 6 months and 3 months.
