Smart Relative Strength Can Remove False SignalsRelative strength is one of the most useful indicators in the market, highlighting when stocks and sectors are outperforming or underperforming a broader index.
Traditional RS compares the percentage change of one symbol over a given time frame and subtracts the percentage change of the S&P 500 over the same period.
This is handy, but it can produce false signals at times of volatility. For example, when the broader market is crashing, certain sectors may “outperform” simply by falling less than the S&P 500.
Smart Relative Strength addresses this shortcoming by requiring that the symbol’s absolute AND relative returns both be positive. Otherwise a zero is returned.
This was useful last week on the Dow Jones Transportation Average . Using simple relative strength, it had its best one-week performance against the S&P 500 since October 2008. This was obviously a false signal because October 2008 was a time that everything else was crashing.
Smart Relative Strength showed that, excluding periods of overall decline, DJT had its best week since January 2008.
Note: This chart uses a 1-period interval, while the code defaults to 21 periods.
Cerca negli script per "Relative"
Relative Volume RVOL AlertsRelative Volume or RVOL is an indicator used to help determine the amount of volume change over a given period of time.
It is often used to help traders determine how in-play a ticker is.
General rule of thumb is the higher the RVOL, the more in play a stock is.
I myself like to use it as a substitute of the volume indicator itself.
Basic Calculation:
Relative Volume = Current Volume / Average Volume
Crossover Signals:
Any time there is a volume spike which causes a crossover of the user set 'Smoothed Moving Average' or 'Threshold' a green/red dot will appear at the top. The color of the dot is dependent on closing of the candle. Therefore it does not necessarily mean price will continue in that direction since volume spikes often happen in peaks or valleys.
Threshold:
The level at which custom alerts and signal can be set. The higher the value, the more volume required to trigger.
Built in Alerts:
You can set custom alerts for the crossovers of the adjustable threshold, or the average RVOL band.
Relative Performance Comparison among different sectorsThis script shows how money is moving among different sectors using relative-strength of the corresponding sector-specific largest ETFs against MSCI World. Trend and current value of Relative-strength can be used to determine the sector in which you should make your investment at this point, considering the movement in markets.
Relative PerformanceThis indicator takes the Performance Table from @BeeHolder and converts it to a Relative Performance table so you can compare the current chart vs. an Index (or whatever other ticker you want) to see the relative performance of one vs. the other. I also added a cell for ADR, which is also the same value as "Monthly Volatility" in the stock screener. This can be useful when screening stocks based on performance and volatility.
Relative VolatilityRelative Volatility is a technical indicator designed to assess changes in market volatility by comparing fast and slow Average True Range (ATR) values. It operates by subtracting a slower ATR (e.g., 50-period ATR) from a faster ATR (e.g., 20-period ATR) and visualizing the result as a histogram. This enables traders to determine whether volatility is increasing or decreasing over time.
This indicator can help traders recognize volatility trends, which can inform decisions related to trade entries, exits, and risk management.
Interpreting Volatility Changes
Increasing Volatility: When the histogram is above zero, it indicates that the fast ATR is greater than the slow ATR, signifying an increase in short-term volatility compared to the long-term average. This may suggest heightened market activity and potential trading opportunities.
Decreasing Volatility: When the histogram is below zero, it shows that the fast ATR is less than the slow ATR, indicating a decrease in short-term volatility relative to the long-term average. This may suggest consolidating markets or reduced trading activity.
Relative Volatility assists traders in monitoring and analyzing changes in market volatility, providing insights that can enhance trading strategies and decision-making processes.
Relative Performance Dashboard v. 2This is a smaller and cleaner version of my previous Relative Performance table. It looks at the rate of change over 1M, 3M, 6M, 1YR & YTD and displays those for the current chart's ticker vs. an index/ticker of your choosing (SPX is default). I also have some fields for the ADR of the displayed chart, how far away the displayed chart is from 52-week highs, and a single number that compares the average relative strength of the displayed chart vs. the index. The way this average calculates is customizable by the user.
I like using this table next to an Earnings/Sales/Volume table that already exists by another user in the same pane and I designed this one so it can look just like that one to give a great view of the both fundamental and technical strength of your ticker in the same pane.
Keeping fundamental data independent from performance data allows you to still be able to see performance on things without fundamental data (i.e. ETFs, Indices, Crypto, etc.) as any script that uses fundamental data will not display when a chart that does not have fundamental data is displayed.
Relative Daily Change% by SUMIT
"Relative Daily Change%" Indicator (RDC)
The "Relative Daily Change%" indicator compares a stock's average daily price change percentage over the last 200 days with a chosen index.
It plots a colored curve. If the stock's change% is higher than the index, the curve is green, indicating it's doing better. Red means the stock is under-performing.
This indicator is designed to compare the performance of a stock with specific index (as selected) for last 200 candles.
I use this during a breakout to see whether the stock is performing well with comparison to it`s index. As I marked in the chart there was a range zone (red box), we got a breakout with good volume and it is also sustaining above 50 and 200 EMA, the RDC color is also in green so as per my indicator it is performing well. This is how I do fine-tuning of my analysis for a breakout strategy.
You can select Index from the list available in input
**Line Color Green = Avg Change% per day of the stock is more than the Selected Index
**Line Color White = Avg Change% per day of the stock is less than the Selected Index
If you want details of stocks for all index you can ask for it.
Disclaimer : **This is for educational purpose only. It is not any kind of trade recommendation/tips.
Relative VolumeHello traders,
"There's nothing new on Wall Street" is an age-old saying that still shows its relevance in modern day financial markets; volume still serves as a valuable tool for any trader just as it did for those that came and succeeded before us; in order to succeed in modern day markets one has to take it up a notch and dabble in complicated topics, like math. Now I dunno about you reader but I’m not keen on sitting around all day just to watch numbers on a screen; it’s pretty important to add some color into your life before it becomes dull but how can someone add colors into their trading toolkit as an aid rather than bother? With a bit of help from 3 other amazing open-source indicators you too can become a statistics enjoyer by combining math and colors to make pattern recognition much more intuitive and offering more peace of mind when trading. “Sir but how?”, glad you didn’t ask, it helps with simplifying statistics, in this case a Gaussian bellcurve
“HUH?”, you say? Alright class, Gaussian bellcurves for math dislikers 101 is in session
- Imagine that we have a bunch of numbers that we want to graph. We could just draw a line and plot the numbers on it, but that might not be very interesting.
- Instead, we can use the shape of a bell to show how many of each number we have.
- Let's say we have a lot of people and we want to graph how tall they are. We would start by making a line from the shortest person to the tallest person, and then we would draw the bell shape around the line.
- The bell shape is called a "Gaussian Bell Curve," and it shows us how many people are a certain height.
- In the middle of the bell, where it's the widest, we have the most people who are about average height. As we move to the sides of the bell, the curve gets lower because there are fewer people who are really tall or really short.
The bell curve discussed is the main idea for the candle coloring component of this indicator as being able to analyze the distribution of an entire dataset, in this case volume, can alert us when volume/participation in the market is away from its average using color, and therefore an opportunity could be present. Fair warning, it’s important to not strictly focus on volume as volume is meant to be confluence to the current structure of the market rather than causing tunnel vision.
Why 3 indicators to combine?
It starts with the RVOL by Mik3Christ3ns3n indicator as the backbone by calculating the average volume over a specified period of time, and then compares each new volume value to this average to determine whether it is above or below the average. The indicator then normalizes the volume data and calculates the z-score/standard deviation to determine whether the volume is within normal range or is an anomaly beyond a specified threshold which can also be set into an alert to aid in eyeing possible opportunities.
The code also includes Candle Coloring by Morty as it calculates a function to get the z-score for the size of the candle's body, and then compares it to the z-score for volume to determine whether the body size is a factor in the price action.
Finally, the code plots the anomalies and the normalized volume data on the chart using the first RVOL indicator mentioned, and colors the bars of the chart based on whether they are within normal range or are anomalies which comes from using code from veryfid's relative volume indicator.
Overall, this custom technical indicator is best used to identify unusual changes in trading volume, which may indicate potential price movements in the underlying.
How about some examples?
This first example is for my scalpers wanting to get in and out but not having much of an idea where or let alone how; using a tool like VWAP can be great for determining the area value to execute mean reversion trades once a speculator spots a colored candle anomaly at standard deviation band. Works best when VWAP is flat as it signals lack of conviction from both bulls and bears
This second example is for my fire and forget intraweek swing traders who want to execute a higher timeframe trend-following bias. A speculator starting 2023 off notices that the negative sentiment around Binance from late last year has quieted down and has conviction in upside after BTC began an uptrend as monthly VWAP (right chart) has began sloping up as well as a rally with momentum shown with the blue colored candle so the trader waits wait for a pullback for entry. On the chart to the left of the 4H the speculator notices a pullback into the area of interest to do business so a limit bid is left to enter for continued upside in Bitcoin through January 2023 just by keeping things simple
That’s really the main purpose of this indicator: simplicity of statistics for confluence using volume
Volume precedes price and price moves only for narrative to follow- why wait for your subjective Twitter timeline to give you a biased narrative to trade when you can use objective analysis by combining statistics and colors to allow for a cleaner execution process
“But what about risk management?” Glad you didn’t ask reader!
One last example then, we meet our trend following trader again feeling euphoric so they know profit taking season is coming soon but wants to leave emotion out of it. How to go about it? Same idea as our last trend following example: we see on the 4h chart to the right side shows Bitcoin lose and trade back within the 2nd standard deviation of quarterly VWAP which is telling our speculator that the uptrend has broken on top of which notices on the 30 minute chart on the left that aggressive market buyers have been steadily absorbed by limit sellers on multiple occasions of retesting 30,500 shown with the green colored candles and volume bars below, time to sell.
Turns out that selling was proactive risk management because price dumped thereafter
Hope this explanation gave you some useful insights on using statistics as colors from cherrypicked examples, remember that just because my examples are cherrypicked doesn’t invalidate these concepts at all as the market only does two things, initiate aggressive auctions and respond passively to auctions. This tool makes for seeing where that initiative aggressive activity is happening much simpler to deduce if others will respond to an anomaly of initiative aggressive activity or if the aggression will continue.
If there’s just one thing you take from this- simplicity above all, cheers and good luck
Relative VolumeRelative Volume label in percent. So 400% RVol means, today's volume is 4x compared to avg volume for the length you selected.
Relative Strength Comparison_FBMSCAPShows the strength of current symbol relative to strength of another symbol, defaulted to Bursa Malaysia broad market index: FBMSCAP. Best viewed in weekly chart.
Relative Strength Comparison (RSC) Indicator SignalsThis Relative Strength Comparison (RSC) indicator overlays a simple moving average (SMA) of the prior days values and changes color when the RSC crosses above and below that value as an indicator with bearish and bullish signals in comparison to another symbol.
Relative Strength Index (RSI) + Realtime DivergencesRelative Strength Index (RSI) + Realtime Divergences
This version of the RSI indicator includes the following features:
- Optional divergence lines drawn directly onto the oscillator in realtime.
- Configurable alerts to notify you when divergences occur.
- Configurable lookback periods to fine tune the divergences drawn in order to suit different trading styles and timeframes.
- Background colouring option to indicate when the RSI oscillator has crossed above or below its centerline.
- Alternate timeframe feature allows you to configure the oscillator to use data from a different timeframe than the chart it is loaded on.
- Fadeout oscillator feature will fade out all but the most recent history, leaving your chart free of visual noise.
- Flip oscillator feature can be used with the Tradingview 'Flip chart' feature (Alt+i) in order to flip both the chart and the oscillator, too. This feature is to help traders manually spot divergences that may have a strong natural bias in one direction.
- Optional centerline and range bands.
- Various optional moving average types, bollinger bands etc.
This indicator adds additional features onto the standard RSI whose core calculations remain unchanged. Namely, the configurable option to automatically, quickly and clearly draw divergence lines onto the oscillator for you as they occur in realtime. It also has the addition of unique alerts, so you can be notified when divergences occur without spending all day watching the charts. Furthermore, this version of the RSI comes with configurable lookback periods, which can be configured in order to adjust the sensitivity of the divergences, in order to suit shorter or higher timeframe trading approaches.
What is the Relative Strength Index ( RSI )?
Investopedia describes the Relative Strength Index as follows:
“The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The indicator was developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, New Concepts in Technical Trading Systems.
The RSI can do more than point to overbought and oversold securities. It can also indicate securities that may be primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.”
The RSI is also commonly used to spot divergences.
You can read more about the RSI and its calculations here
What are divergences?
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
There are 4 main types of divergence, which are split into 2 categories;
regular divergences and hidden divergences. Regular divergences indicate possible trend reversals, and hidden divergences indicate possible trend continuation.
Regular bullish divergence: An indication of a potential trend reversal, from the current downtrend, to an uptrend.
Regular bearish divergence: An indication of a potential trend reversal, from the current uptrend, to a downtrend.
Hidden bullish divergence: An indication of a potential uptrend continuation.
Hidden bearish divergence: An indication of a potential downtrend continuation.
How do traders use divergences in their trading?
A divergence is considered a leading indicator in technical analysis , meaning it has the ability to indicate a potential price move in the short term future.
Hidden bullish and hidden bearish divergences, which indicate a potential continuation of the current trend are sometimes considered a good place for traders to begin, since trend continuation occurs more frequently than reversals, or trend changes.
When trading regular bullish divergences and regular bearish divergences, which are indications of a trend reversal, the probability of it doing so may increase when these occur at a strong support or resistance level . A common mistake new traders make is to get into a regular divergence trade too early, assuming it will immediately reverse, but these can continue to form for some time before the trend eventually changes, by using forms of support or resistance as an added confluence, such as when price reaches a moving average, the success rate when trading these patterns may increase.
Typically, traders will manually draw lines across the swing highs and swing lows of both the price chart and the oscillator to see whether they appear to present a divergence, this indicator will draw them for you, quickly and clearly, and can notify you when they occur.
Setting alerts.
With this indicator you can set alerts to notify you when any/all of the above types of divergences occur, on any chart timeframe you choose.
Configurable pivot periods.
You can adjust the default pivot periods to suit your prefered trading style and timeframe. If you like to trade a shorter time frame, lowering the default lookback values will make the divergences drawn more sensitive to short term price action.
Disclaimer: This script includes code from the stock RSI by Tradingview as well as the Divergence for Many Indicators v4 by LonesomeTheBlue.
Relative Strength of 2 securities - Jayy This is an update of the Relative Strength to index as used by Leaf_West.. 4th from the top. my original RS script is 3rd from the top.
In this use of the term " Relative Strength" (RS) what is meant is a ratio of one security to another.
The RS can be inerpreted in a fashion similar to price action on a regual security chart.
If you follow his methods be aware of the different moving averages for the different time periods.
From Leaf_West: "on my weekly and monthly R/S charts, I include a 13 EMA of the R/S (brown dash line) and
an 8 SMA of the 13 EMA (pink solid line). The indicator on the bottom of the weekly/monthly charts is an
8 period momentum indicator of the R/S line. The red horizontal line is drawn at the zero line.
For daily or 130-minute time periods (or shorter), my R/S charts are slightly different
- the moving averages of the R/S line include a 20EMA (brown dash line), a 50 EMA (blue dash line) and
an 8 SMA of the20 EMA (pink solid line). The momentum indicator is also slightly different from the weekly/monthly
charts – here I use a 12 period calculation (vs 8 SMA period for the weekly/monthly charts)."
Leaf's website has gone but I if you are interested in his methods message me.
What is different from my previous RS: The RS now displays RS candles. So if you prefer to watch price action of candles to
a line chart which only plots the ratio of closes then this will be more interesting to you.
I have also thrown in a few options to have fun with.
Jayy
Relative Strength Volume ComparisonThe Relative Strength Volume Comparison is a powerful tool that can help traders identify the current trend based on volume pressure and potential reversals.
This oscillator is made of two lines and the overbought and oversold levels. Each of these two lines is a relative-strength formula that contains both the famous RSI and CCI formulas, smoothed by a Hull moving average.
The two lines are different for input. The colored line is based just on price and changes color based on the relation with the other line. The second line uses as input an average of three different popular volume indicators: The OBV, the Accumulation/Distribution, and the PVT.
Thanks to this tool, which uses 6 different formulas combined, traders can:
- Identify the current trend direction, based on the color of the area fill and the first colored line
- Identify potential reversal areas thanks to the overbought and oversold levels, customizable in the input section alongside the length and smoothing parameters.
Relative Strength of Volume Indicators by DGTThe Relative Strength Index (RSI) , developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements.
• Traditionally the RSI is considered overbought when above 70 and may be primed for a trend reversal or corrective pullback in price, and oversold or undervalued condition when below 30. During strong trends, the RSI may remain in overbought or oversold for extended periods.
• Signals can be generated by looking for divergences and failure swings. If underlying prices make a new high or low that isn't confirmed by the RSI, this divergence can signal a price reversal. If the RSI makes a lower high and then follows with a downside move below a previous low, a Top Swing Failure has occurred. If the RSI makes a higher low and then follows with an upside move above a previous high, a Bottom Swing Failure has occurred
• RSI can also be used to identify the general trend. In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with the 40-50 zone acting as support. During a downtrend or bear market the RSI tends to stay between the 10 to 60 range with the 50-60 zone acting as resistance
This study aim to implement Relative Strength concept on most common Volume indicators, such as
• Accumulation Distribution is a volume based indicator designed to measure underlying supply and demand
• Elder's Force Index (EFI) measures the power behind a price movement using price and volume
• Money Flow Index (MFI) measures buying and selling pressure through analyzing both price and volume (used as it is)
• On Balance Volume (OBV) , created by Joe Granville, is a momentum indicator that measures positive and negative volume flow
• Price Volume Trend (PVT) is a momentum based indicator used to measure money flow
Plotting will be performed for regular RSI and RSI of Volume indicator (RSI(VOLX)) selected from the dialog box, where the possibility to apply smoothing is provided as option. Additionally, labels can be added optionally to display the value and name of selected volume indicator
Secondly, ability to present Volume Histogram within the same study along with its Moving Average or Volume Oscillator based on selection
Finally, Volume Based Colored Bars , a study of Kıvanç Özbilgiç is added to emphasis volume changes on top of the bars
Nothing excessively new, the study combines RSI with;
- RSI concept applied to some of the common Volume indicators presented with a highlighted over/under valued threshold area, optional labeling and smoothing,
- added Volume data with additional information and
- colored bars based on volume
Thanks @Vishant_Meshram for the inspiration 🙏
Disclaimer:
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
The script is for informational and educational purposes only. Use of the script does not constitute professional and/or financial advice. You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
Relative strength of a stock against the sugar index (Top 18)This indicator can be used for sugar stocks to compare their relative strength with that of their respective industry. It can also be used to gauge the momentum in sugar stocks against the other indexes like Nifty, Bank Nifty, CNXIT, CNXAUTO and check which index is outperforming the other.
Made with reference to the index published by Stef @Scheplick
Relative Strength Index with fast and slow MAsThis is the typical Relative Strength Index indicator with two moving averages, one slow (length 50 by default) and one fast (length 20 by default). Additionally, there are four lines, which mark the oversold/overbought signals at different levels, there are two inner bands with values at the levels 40, and 60, and two outer bands at the levels 20, and 80. The presence of the fast and slow moving averages and their crossover/crossunder with the oversold/overbought levels or the RSI can provide more insightful and faster signals. The indicator has a slightly different colouring mechanism.
The views of the RSI indicator on the above the price chart in both dark and light modes:
Relative Volume Strength Index (MZ RVSI)INTRODUCTION
Volume always plays a role of key indication for price movements and momentum and I always found the same problem with all available volume oscillators and indicators which is that their data is always in compounded form that can’t be easily used in raw form as a parameter in many strategies.
This indicator uses raw volume data from one of following oscillators:
TFS Volume Oscillator
On Balance Volume
Klinger Volume Oscillator
Cumulative Volume Oscillator
Volume Zone Oscillator
Then this data goes through the following process of noise filtration:
Hull Moving Average of input data to reduce noise
Relative Strength Index of HMA
Hull Moving Average of RSI to reduce noise for finalized RVSI
ADDITIONAL FEATURES
Heiken-Ashi: Heiken-Ashi values are optional to use in calculations and I’ve set them to default as I found good results with them.
Slope for Trend Detection: Slope of finalized RVSI is calculated in order to check volume trend direction. Another additional feature of Volume breakouts is also added which is used in dynamic coloring of RVSI. Dynamic color indications are as follows.
Green Color:
Strong Volume Uptrend above volume breakout point
Fuchsia Color:
Weak Volume Uptrend below volume breakout point but slope supported
Red Color:
Strong Volume Downtrend below volume breakout point
Gray Color:
Weak Volume Downtrend above volume breakout point but slope supported
Yellow Color:
Possible trend reversal as slope is flat.
DEFAULTS SETTINGS
Volume length is 30 (Better for timeframes higher than 1H)
Hull Moving Average and RSI length is set to 14
ADDITIONAL APPLICATIONS
This indicator can be used as divergence detection tool for volume same way as RSI is used for price divergence. I’ll soon add divergence signals inside the code and this code can be used in multiple ways as volume breakout indication in strategies for better results.
Relative Strength Index & Stochastic RSIThis script calculates both RSI (Relative Strength Index) and Stock (Stochastic) RSI Indicators, and plots them with a distinctive background on the same graph. The colors were chosen to be very easy on the eyes.
I published it as a way to give back to this community. Use your own judgement when trading, I am not responsible for any losses resulting from the use of my script.
Feel free to modify the script with no attribution.
Relative VolatilityRelative volatility highlights large changes in price. This was designed to be used with my relative volume indicator so that traders can see the effect of volume on price action. It is also a good tool to analyse breakout patterns to identify best entry points and waves.
Above shows relative volatility and relative volume working together.
Relative Momentum Index The Relative Momentum Index (RMI) was developed by Roger Altman. Impressed
with the Relative Strength Index's sensitivity to the number of look-back
periods, yet frustrated with it's inconsistent oscillation between defined
overbought and oversold levels, Mr. Altman added a momentum component to the RSI.
As mentioned, the RMI is a variation of the RSI indicator. Instead of counting
up and down days from close to close as the RSI does, the RMI counts up and down
days from the close relative to the close x-days ago where x is not necessarily
1 as required by the RSI). So as the name of the indicator reflects, "momentum" is
substituted for "strength".
Relative slopeRelative slope metric
Description:
I was in need to create a simple, naive and elegant metric that was able to tell how strong is the trend in a given rolling window. While abstaining from using more complicated and arguably more precise approaches, I’ve decided to use Linearly Weighted Linear Regression slope for this goal. Outright values are useful, but the problem was that I wasn’t able to use it in comparative analysis, i.e between different assets & different resolutions & different window sizes, because obviously the outputs are scale-variant.
Here is the asset-agnostic, resolution-agnostic and window size agnostic version of the metric.
I made it asset agnostic & resolution agnostic by including spread information to the formula. In our case it's weighted stdev over differenced data (otherwise we contaminate the spread with the trend info). And I made it window size agnostic by adding a non-linear relation of length to the output, so finally it will be aprox in (-1, 1) interval, by taking square root of length, nothing fancy. All these / 2 and * 2 in unexpected places all around the formula help us to return the data to it’s natural scale while keeping the transformations in place.
Peace TV
