Compare Strength with SLOPE

20 apr

Description
This indicator compares the relative strength between the current asset and a benchmark (e.g., BTC vs. ETH or AAPL vs. SPY) using a linear regression slope of their ratio over time.

The ratio is calculated as: close / benchmark

A linear regression slope is computed over a user-defined window

The slope represents trend strength: if it’s rising, the current asset is outperforming the benchmark

Plots
Gray Line: The raw ratio between the asset and benchmark

Orange Line: The slope of the ratio (shows momentum)

Background Color:

Green: The asset is significantly stronger than the benchmark

Red: The asset is significantly weaker than the benchmark

No color: No clear trend

Settings
Slope Window Length: Number of candles used in the regression (default = 10)

Slope Threshold: Sensitivity of trend detection. Smaller values detect weaker trends.

Example Use Cases
Style Rotation Strategy: Use the slope to determine whether "Growth" or "Value" style is leading.

Pair Trading / Relative Performance: Track which asset is leading in a pair (e.g., BTC vs ETH).

Factor Timing: Serve as a timing model to allocate between different sectors or factors.

Happy trading!

20 apr

Note di rilascio

Indicator Name: Relative Strength Slope

Purpose:
Compare the strength of the current asset to a benchmark (e.g. BTC vs ETH or stock vs index) by computing the linear regression slope of their price ratio.

Inputs:
Benchmark Symbol: Reference symbol to compare against.

Slope Window: Number of bars used to calculate the slope.

Threshold: Minimum slope magnitude to classify trend as meaningful.

Interpretation:
Red background: Current asset is trending stronger than the benchmark (positive slope).

Green background: Benchmark is outperforming the current asset (negative slope).

Gray ratio line: Displays the price ratio between current asset and benchmark.

Orange line: Shows the actual slope value over time.

20 apr

Note di rilascio

Indicator: Compare Strength (Slope-based)
This TradingView indicator compares the relative strength between the current chart asset and a selected benchmark asset. It uses the slope of the log-transformed ratio of the two price series to identify trend bias.

What’s New
We updated the calculation to use math.log(close / benchmark_close) instead of simple division. This log transformation ensures:

Scale invariance across vastly different asset price levels (e.g., BTC vs altcoins)

Symmetrical treatment of upward and downward movements

Smoother slope calculation for better trend sensitivity

Inputs
Symbol: The benchmark asset (e.g., BINANCE:BTCUSDT)

Length: Period used for slope calculation (default: 10)

Multiplier: A scaling factor applied to the log-ratio for better visibility (default: 1000)

Interpretation
Red background: The current asset is stronger than the benchmark (positive slope)

Green background: The current asset is weaker than the benchmark (negative slope)

Flat slope: No clear dominance, trend is neutral

Why Use Log-Ratio + Slope?
Using math.log(price / benchmark) provides a more reliable measure of relative price movement across assets with different nominal values. Applying a slope to this ratio allows us to determine which asset is gaining strength faster.