Relative Strength and MomentumRelative Strength and Momentum Indicator
Unlock deeper market insights with the Relative Strength and Momentum Indicator—a powerful tool designed to help traders and investors identify the strongest stocks and sectors based on relative performance. This custom indicator displays essential information on relative strength and momentum for up to 15 different symbols, compared against a benchmark index, all within a clear and organized table format.
Key Features:
1. Customizable Inputs: Choose up to 15 symbols to compare, along with a benchmark index, allowing you to tailor the indicator to your trading strategy. The 'Lookback Period' input defines how many weeks of data are analyzed for relative strength and momentum.
2. Relative Strength Calculation: For each selected symbol, the indicator calculates the Relative Strength (RS) against the chosen benchmark. This RS is further refined using an exponential moving average (EMA) to smooth the results, providing a more stable trend overview.
3. Momentum Analysis: Momentum is determined by analyzing the rate of change in relative strength. The indicator calculates a momentum rank for each symbol, based on its relative strength’s improvement or deterioration.
4. Percentile Ranking System: Each symbol is assigned a percentile rank (from 1 to 100) based on its relative strength compared to the others. Similarly, momentum rankings are also assigned from 1 to 100, offering a clear understanding of which assets are outperforming or underperforming.
5. Visual Indicators:
a. Green: Signals improving or stable relative strength and momentum.
b. Red: Indicates declining relative strength or momentum.
c. Aqua: Highlights symbols performing well on both relative strength and momentum—ideal candidates for further analysis.
6. Two Clear Tables:
a. Relative Strength Rank Table: Displays weekly rankings of relative strength for each symbol.
b. Momentum Table: Shows momentum trends, helping you identify which symbols are gaining or losing strength.
7. Color-Coded for Easy Analysis: The tables are color-coded to make analysis quick and straightforward. A green color means the symbol is performing well in terms of relative strength or momentum, while red indicates weaker performance. Aqua marks symbols that are excelling in both areas.
Use Case:
a. Sector Comparison: Identify which sectors or indexes are showing both relative strength and momentum to pick high-potential stocks. This allows you to align with broader market trends for improved trade entries.
b. Stock Selection: Quickly compare symbols within the same sector to find the stronger performers.
Cerca negli script per "relative strength"
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.
Relative StrengthThis strategy employs a custom "strength" function to assess the relative strength of a user-defined source (e.g., closing price, moving average) compared to its historical performance over various timeframes (8, 34, 20, 50, and 200 periods). The strength is calculated as a percentage change from an Exponential Moving Average (EMA) for shorter timeframes and a Simple Moving Average (SMA) for longer timeframes. Weights are then assigned to each timeframe based on a logarithmic scale, and a weighted average strength is computed.
Key Features:
Strength Calculation:
Calculates the relative strength of the source using EMAs and SMAs over various timeframes.
Assigns weights to each timeframe based on a logarithmic scale, emphasizing shorter timeframes.
Calculates a weighted average strength for a comprehensive view.
Visualizations:
Plots the calculated strength as a line, colored green for positive strength and red for negative strength.
Fills the background area below the line with green for positive strength and red for negative strength, enhancing visualization.
Comparative Analysis:
Optionally displays the strength of Bitcoin (BTC), Ethereum (ETH), S&P 500, Nasdaq, and Dow Jones Industrial Average (DJI) for comparison with the main source strength.
Backtesting:
Allows users to specify a start and end time for backtesting the strategy's performance.
Trading Signals:
Generates buy signals when the strength turns positive from negative and vice versa for sell signals.
Entry and exit are conditional on the backtesting time range.
Basic buy and sell signal plots are commented out (can be uncommented for visual representation).
Risk Management:
Closes all open positions and cancels pending orders outside the backtesting time range.
Disclaimer:
Backtesting results do not guarantee future performance. This strategy is for educational purposes only and should be thoroughly tested and refined before risking capital.
Additional Notes:
- The strategy uses a custom "strength" function that can be further customized to explore different timeframes and weighting schemes.
- Consider incorporating additional technical indicators or filters to refine the entry and exit signals.
- Backtesting with different parameters and market conditions is crucial for evaluating the strategy's robustness.
Relative Strength Buy/Sell SignalsThis Pine Script builds on the MarketSurge-style Relative Strength indicator. It calculates the RS line by comparing the stock's close to a benchmark (default: SPY). Buy signals are generated when the RS line crosses above its moving average (default 10-period SMA), indicating improving relative strength. Sell signals occur when it crosses below, suggesting weakening relative strength. Signals are labeled "BUY" (green) and "SELL" (red) on the chart, with background highlights.
It also retains the new 52-week RS highs (orange circles) and lows (purple circles), which can serve as additional confirmation for outperformance or underperformance.
Note: This approximates relative strength for trading signals but does not replicate the proprietary IBD RS Rating (a 1-99 percentile rank across all stocks). For best results, use on daily charts and combine with other analysis. Backtest thoroughly, as no strategy guarantees profits
Relative StrengthA relative strength overlay, similar to that of IBD shown on Marketsmith.
The value is not from 0-100, it is compared with the Nasdaq x2 ETF, QLD. Therefore, if greater than zero it will give you a good indication that the stock has a very good relative strength.
Feel free to change the comparison ETF to one of your choosing.
Relative StrengthDescription:
This indicator provides a simplified yet powerful method for measuring a stock's momentum based on its proximity to its recent high. It is a direct implementation of a trading concept discussed in a lecture from the New York Institute of Finance.
Core Concept
The underlying theory, supported by academic research, is that a stock making a new high is one of the most bullish signals possible. Such stocks have a statistical tendency to continue making new highs in the near term.
Instead of requiring complex relative strength calculations against a universe of stocks, this indicator uses a simple and elegant ratio to act as a proxy for momentum:
Indicator Value = Current Close / Highest High of Lookback Period
A value approaching 1.0 indicates the stock is strong and nearing a new high. A value at 1.0 means a new high has just been made.
How to Use This Indicator
The indicator consists of two primary components:
RS Line (Teal): The core momentum calculation (Close / High).
Signal MA (Orange): A moving average of the NHRS Line, which acts as the trigger for signals.
The signals are generated based on the crossover between these two lines:
BUY Signal: When the RS Line crosses ABOVE its moving average. This suggests that short-term momentum is accelerating and a new uptrend may be starting. The background will turn green.
SELL Signal: When the RS Line crosses BELOW its moving average. This indicates that momentum is fading and it may be prudent to exit the position to avoid a decline. The background will turn red.
Indicator Settings
You can customize the indicator to fit your trading style and the timeframe you are analyzing:
High Lookback Period: Choose the period for the "Highest High" calculation. Options range from 1 Month to 12 Months (52 weeks), allowing you to measure short-term or long-term strength.
Moving Average Length: Adjust the length of the signal line's moving average. The lecturer defaults to 26 weeks for a six-month view.
Moving Average Type: Select the type of moving average for the signal line (SMA, EMA, WMA, HMA).
Credits and Inspiration
Proper credit is essential. This script is a practical application of a concept that builds upon foundational academic work.
The core idea that a stock's proximity to its 52-week high is an investable anomaly was detailed in the 2004 Journal of Finance paper:
"The 52 Week High and Momentum Investing" by Thomas J. George and Chuan-Yang Hwang.
The lecturer's contribution, which this script implements, was to simplify this concept into an actionable trading tool by applying a moving average crossover to generate clear and objective buy and sell signals.
Disclaimer: This tool is for educational and informational purposes only. It is not financial advice. All trading involves risk, and you should always perform your own research and backtesting before making any trading decisions.
Relative Strength Scatter Plot [LuxAlgo]The Relative Strength Scatter Plot indicator is a tool that shows the historical performance of various user-selected securities against a selected benchmark.
This tool is inspired by Relative Rotation Graphs®. Relative Rotation Graphs® is a registered trademark of JOOS Holdings B.V. This script is neither endorsed, nor sponsored, nor affiliated with them.
🔶 USAGE
This tool depicts a simple scatter plot using the relative strength ratio as the X-axis and its momentum as the Y-axis of the user-selected symbols against the selected benchmark.
The graph is divided into four quadrants, and the interpretation of the graph is done depending on where a point is situated on the graph:
A point in the green quadrant would indicate that the security is leading the benchmark in strength, with positive strength momentum.
A point in the yellow quadrant would indicate that the security is leading the benchmark in strength, with negative strength momentum.
A point in the blue quadrant would indicate that the security is lagging behind the benchmark in strength, with positive strength momentum.
A point in the red quadrant would indicate that the security is lagging behind the benchmark in strength, with negative strength momentum.
The trail of each symbol allows the user to see the evolution of the relative strength momentum relative to the relative strength ratio. The length of the trail can be controlled by the "Trail Length" setting.
🔶 DETAILS
Our relative strength ratio estimate is first obtained from the relative strength between the symbol of interest and the benchmark, the result is then smoothed using a linearly weighted moving average (wma). This result is then normalized with a wma of the smoothed relative strength, this ratio is again smoothed with the wma and multiplied by 100.
The relative strength momentum estimate is obtained from the ratio between the previously estimated RS-Ratio and its wma, this ratio is then multiplied by 100.
🔶 SETTINGS
Calculation Window: Calculation window of the RS-Ratio and RS-Momentum metrics.
Symbols: Symbols used for the computation of the graph, each settings line allows us to determine whether the symbol is to be displayed on the graph as well as its color.
Benchmark: Benchmark symbol used for the computation of the graph. Indices are commonly used as a benchmark.
🔹 Graph Settings
Trail Length: Number of past data points to display on the graph for each symbol.
Resolution: Controls the horizontal length of the graph.
Relative Strength Scoring SystemRelative Strength Scoring System :
Important prerequisite :
This indicator can be loaded on any forex chart, i.e. a currency pair, but must not be loaded on any other asset due to certain market closures.
The chart timeframe must be less than or equal to the trading timeframe, which is the indicator's first parameter. A timeframe equal to that of the "Trading Timeframe" parameter is preferable.
Introduction :
This indicator measures the relative strength of a currency against all other currencies using spread formulas. It gives an indication of which currencies are bullish, neutral or bearish. The ultimate aim of this indicator is to find out which pair will generate a higher probability of gain than the others by pairing the most bullish pair with the most bearish pair.
Spread formulas :
To find the relative strength of a currency compared with others, we use the following spreads formulas :
USD = (FX:USDJPY/100+SAXO:USDEUR+FX:USDCHF+SAXO:USDGBP+FX:USDCAD+SAXO:USDAUD+FX_IDC:USDNZD)/7
JPY = (SAXO:JPYUSD/100+FX_IDC:JPYAUD/100+FX_IDC:JPYCAD/100+FX_IDC:JPYNZD/100+FX_IDC:JPYCHF/100+SAXO:JPYEUR/100+FX_IDC:JPYGBP/100)/7
CHF = (FX:CHFJPY/100+SAXO:CHFUSD+SAXO:CHFEUR+FX_IDC:CHFGBP+FX_IDC:CHFCAD+SAXO:CHFAUD+FX_IDC:CHFNZD)/7
EUR = (FX:EURJPY/100+FX:EURUSD+FX:EURCHF+FX:EURGBP+FX:EURCAD+FX:EURAUD+FX:EURNZD)/7
GBP = (FX:GBPJPY/100+FX:GBPUSD+FX:GBPCHF+SAXO:GBPEUR+FX:GBPCAD+FX:GBPAUD+FX:GBPNZD)/7
CAD = (FX:CADJPY/100+SAXO:CADUSD+FX:CADCHF+FX_IDC:CADGBP+SAXO:CADEUR+FX_IDC:CADAUD+FX_IDC:CADNZD)/7
AUD = (FX:AUDJPY/100+FX:AUDUSD+FX:AUDCHF+SAXO:AUDGBP+FX:AUDCAD+SAXO:AUDEUR+FX:AUDNZD)/7
NZD = (FX:NZDJPY/100+FX:NZDUSD+FX:NZDCHF+SAXO:NZDGBP+FX:NZDCAD+SAXO:NZDAUD+SAXO:NZDEUR)/7
CRYPTO = (BITSTAMP:BTCUSD+BITSTAMP:ETHUSD+BITSTAMP:LTCUSD+BITSTAMP:BCHUSD)/4
Timeframes :
As mentioned in the prerequisites, the chart timeframe must not be greater than the trading timeframe. The latter corresponds to the timeframe chosen by the trader to enter a position, and is the indicator's first parameter. Once this has been chosen, the algorithm selects the timeframes of the "Trend" and "Velocity" charts. Here's how it allocates them :
Trading TF => ("Velocity TF", "Trend TF")
"5min" => ("15min ", "60min")
"15min" => ("60min ", "4h")
"30min" => ("2h ", "8h")
"60min" => ("4h ", "12h")
"4h" => ("12h", "1D")
"6h" => ("1D", "3D")
"8h" => ("1D", "4D")
"12h" => ("2D", "1W")
"1D" => ("3D", "1W")
Trend Scoring System :
When the timeframe of the trend graph has been allocated, the algorithm will establish this graph's score using three criteria :
Trend chart pivot points: if the last two pivots, high and low, are increasing, the score is 1; if they are decreasing, the score is -1; else the score is 0.
SMA: if its slope is increasing with a candle strictly above the SMA value, the score is 1; if its slope is decreasing with a candle strictly below it, the score is -1; otherwise, it is 0.
MACD: if the MACD is positive, the score is 1, if it is negative, the score is -1; else it's 0.
We then sum the scores of these three criteria to find the trend score.
Velocity Scoring System :
In the same way, we analyze the score of the "velocity" graph with its corresponding timeframe using three criteria :
The EMA: if its slope is increasing with a candle strictly above the EMA value, the score is 1; if its slope is decreasing with a candle strictly below it, the score is -1; otherwise, it is 0.
The RSI: if the RSI's EMA has an increasing slope with an RSI strictly greater than the value of this EMA, the score is 1; and if the RSI's EMA has a decreasing slope with an RSI strictly less than this EMA, the score is -1; otherwise it is 0.
SAR parabolic: if the SAR is below the price, the score is 1; if it is above the price, the score is -1.
We then sum the scores of these three criteria to find the velocity score.
Relative Strength Scoring System :
Once the trend score and velocity score have been calculated, we determine the relative strength score of each currency using the following algorithm :
If trend score >=2 and velocity score >=2, the currency is bullish.
If trend score <=2 and velocity score <=2, currency is bearish
If (trendScore>=2 or velocityScore>=2) and (trendScore=1 or velocityScore=1) the currency is not yet bullish
If (trendScore<=2 or velocityScore<=2) and (trendScore=-1 or velocityScore=-1) the currency is not yet bearish.
Otherwise the currency is neutral
Parameters :
Trading Timeframe: the trading timeframe chosen by the trader for which he makes his position entry and exit decisions. Default is 1h
Pivot Legs: Parameter used for the chart "Trend" setting the pivot strength to the right and left of high/low. Default is 2
SMA Length: SMA length of the chart "Trend". Default is 20
MACD Fast Length: Length of the MACD fast SMA calculated on the chart "Trend". Default is 12
MACD Slow Length: Length of the MACD slow SMA calculated on the chart "Trend". Default is 26
MACD Signal Length: Length of the MACD signal SMA calculated on the chart "Trend". Default is 9
EMA Length: EMA length of the "Velocity" graph. Default is 13
RSI Length: RSI length of the "Velocity" graph. Default is 14
RSI EMA Length: Length of the RSI EMA. Default is 9
Parabolic SAR Start: Start of the SAR parabola in the "Velocity" graph. Default is 0.02
Parabolic SAR Increment: Increment of the SAR parabola in the "Velocity" graph. Default is 0.02
Parabolic SAR Max: Maximum of the SAR parabola in the "Velocity" graph. Default is 0.2
Conclusion :
This indicator has been designed to determine the relative strength of the major currencies against each other. The aim is to know which pair to trade at the right time in order to maximize the probability of a successful trade. For example, if the USD is bullish and the NZD bearish, we'll short the NZDUSD pair.
Enjoy this indicator and don't forget to take the trade ;)
Relative Strength, not RSIThe Smoothed Relative Strength Indicator (not RSI) with Multi-Timeframe Support is a custom indicator that combines the concepts of Relative Strength (not RSI) and Money Flow Index (MFI) to create a smoothed trend-following tool. It works on any timeframe and adapts to different market conditions.
Key Features:
Multi-timeframe support: [ The script uses the request.security function to fetch data from other timeframes, allowing users to analyze the trend on different timeframes simultaneously.
Relative Strength calculation: The script calculates the Relative Strength (not RSI) by averaging the gains and losses over a user-defined period (len).
Money Flow Index calculation: The script calculates the Money Flow Index (MFI) by considering both price and volume data. The MFI is an oscillator that ranges between 0 and 100, and it helps identify overbought or oversold conditions in the market.
Combination of Relative Strength and MFI:The indicator calculates the average of Relative Strength and MFI values to create the Trend Reversal Strength (TRS) line.
Smoothing the TRS line: The TRS line is smoothed using a Simple Moving Average (SMA) with a user-defined smoothing length (smoothLen). This helps to reduce noise and make the trend more readable.
Trend color determination: The script determines the trend color based on the slope of the smoothed TRS line. If the current value of the smoothed TRS line is higher than the previous one, the line is colored green (uptrend). If the current value is lower than the previous one, the line is colored red (downtrend).
Visual representation of trend changes: The indicator plots small circles at points where the trend color changes, making it easier to identify potential trend reversal points.
Zero line: The script draws a horizontal line at the zero level to help users gauge the market's strength or weakness relative to this level.
Usage:
This indicator can be used as a trend-following tool to identify potential entry and exit points in the market. When the smoothed TRS line is green and rising, it suggests a bullish trend, and traders may consider entering long positions. Conversely, when the smoothed TRS line is red and falling, it indicates a bearish trend, and traders may consider short positions or exiting long trades.
Please note that this indicator should be used in conjunction with other technical analysis tools and proper risk management techniques to improve the accuracy of your trading decisions.
Relative Strength Volatility Adjusted Ema [CC]The Relative Strength Volatility Adjusted Exponential Moving Average was created by Vitali Apirine (Stocks and Commodities Mar 2022) and this is his final indicator of his recent Relative Strength series. I published both of the previous indicators, Relative Strength Volume Adjusted Exponential Moving Average and Relative Strength Exponential Moving Average
This indicator is particularly unique because it uses the Volatility Index (VIX) symbol as the default to determine volatility and uses this in place of the current stock's price into a typical relative strength calculation. As you can see in the chart, it follows the price much closer than the other two indicators and so of course this means that this indicator is best for choppy markets and the other two are better for trending markets. I would of course recommend to experiment with this one and see what works best for you.
I have included strong buy and sell signals in addition to normal ones so strong signals are darker in color and normal signals are lighter in color. Buy when the line turns green and sell when it turns red.
Let me know if there are any other indicators or scripts you would like to see me publish!
Relative Strength RatioAbout this indicator:
This indicator goes under many different names such as Relative Strength Ratio, Comparative Strength, Relative Strength Comparison (RSC) etc.
It compares the strength of the current asset to another asset of your choice and displays the relative strength of the current asset. (Not RSI)
There are several comparative indicators published already here on TV but I have added some unique features that I think is really useful.
When to use it:
This is useful when you want to compare for example a stock with its sector to find out if the stock is a leadership stock in that sector or main index.
You could also use it to compare the sector to its index etc.
If you want to compare for example a stock to both its index and its sector at the same time I suggest you add 2 instances of this indicator.
In many trading systems you are supposed find the strongest tickers by identifying "layers of strength" like 1. The strongest asset class that money is flowing into (like stocks, commodities, bonds, etc.) 2. Find the strongest sectors. 3. Find the stocks outperforming those sectors. 4. Find some kind of entry signal there.
How it works:
The indicator calculates an "RS line" (Relative Strength) by dividing the current ticker with a ticker of your choice. This creates a ratio or pair similar to how currencies are related to each others like USDGBP (dollar against pound). The RS line is black by default so you might want to change its color if you use a dark theme.
If the RS line is moving up it means your current asset is stronger than the asset you are comparing it with and vice versa.
Use the simple moving average to quickly see long term strength trends.
Features
RS line
Shows the relative strength of the current asset.
SMA
This Simple Moving Average has directional coloring; green when it is angled up and red when it is angled down. You can customise the period in the settings. If you don't want the color change just make both up/down color the same.
Relative market label
This displays the market you are currently comparing with as a label next to the last data point.
Because I tried stocks in 2 different countries I want to know which index I am comparing with and this label saves me from going into the settings to check. I find it to be a life saver!
Please let me know if you find any problems or if you have any ideas for improvement
Relative Strength Range RankRelative Strength Range Rank – Chart Asset vs. Benchmarks
Description:
This indicator calculates and ranks the relative strength position of the current chart’s asset against up to five user-defined comparison symbols. By default, the comparison set is USDT.D, USDC.D and DAI.D.
Calculation method:
The same oscillator calculation is applied identically to the current chart’s asset and all comparison symbols:
For each symbol:
Determine the lowest low over LOWEST bars.
Determine the highest high over HIGHEST bars.
Calculate normalized position within range:
raw_osc = (close - lowest_low) / (highest_high - lowest_low) * 100
Apply a 10-period EMA to smooth raw_osc.
Invert and scale to match assets direction:
raw_osc = 100 - EMA_10(raw_osc)
Apply weighted smoothing:
smoothed = 0.191 * previous_value + 0.809 * current_value
Apply a final 1-period EMA to reduce jitter.
Output is the inverted smoothed oscillator value, representing the relative strength rank.
This function is implemented as calculate_oscillator() and used for all input symbols plus the current chart symbol, ensuring consistency in comparative analysis.
Plotting:
Each comparison symbol oscillator is plotted in the indicator pane.
The current chart oscillator is always plotted in black.
Alert condition:
Boolean chart_osc_above_all is true when the current chart oscillator is strictly greater than all other comparison oscillator values.
The alert chart_osc_crossed_above triggers only on the first bar where chart_osc_above_all changes from false to true.
Smoothing advantage:
The smoothing sequence (EMA → weighted smoothing → EMA) is designed to reduce short-term noise while preserving responsiveness to changes in price position.
The initial EMA(10) filters random fluctuations.
The weighted smoothing step (0.191 * prev + 0.809 * current) reduces overshoot and dampens oscillations without introducing significant lag, unlike longer EMAs.
The final EMA(1) step ensures stability in the plotted oscillator without visible jaggedness.
This combination yields a signal that is both smooth and reactive, making relative strength comparisons more precise.
Inputs:
Sym 1–5: up to five comparison tickers.
Lowest low lookback period ( LOWEST ).
Highest high lookback period ( HIGHEST ).
Color for plotted comparison lines.
Output:
Oscillator values from 0 to 100, where higher values indicate that the asset’s current price is closer to the highest high of the lookback period, and lower values indicate proximity to the lowest low.
Sorted table showing all selected assets ranked by oscillator value.
Optional alert when the current chart asset leads all selected assets in oscillator value.
Short Description:
Computes range-normalized oscillator values for the chart asset and up to 5 symbols, using EMA and weighted smoothing to reduce noise while preserving responsiveness; optional alert when the chart asset exceeds all others.
Relative Strength Index with Percentile📈 Relative Strength Index with Percentile Rank (RSI + Percentile)
This advanced RSI indicator adds a powerful percentile ranking system to the classic Relative Strength Index, providing deeper insight into current RSI values relative to recent history.
🔍 Key Features:
Standard RSI Calculation: Identifies overbought/oversold levels using a customizable period.
RSI Percentile (0–100%): Calculates where the current RSI value stands within a user-defined lookback period.
Dynamic Background Coloring:
🟩 Green when RSI percentile is above 80% (strong relative strength)
🟥 Red when RSI percentile is below 20% (strong relative weakness)
Optional Divergence Detection: Spot classic bullish and bearish divergences between price and RSI.
Smoothing Options: Apply various moving averages (SMA, EMA, RMA, etc.) to the RSI, with optional Bollinger Bands.
Flexible Settings: Full control over lookback periods, smoothing type, and band sensitivity.
🧠 Why Use RSI Percentile?
Traditional RSI values can become less informative during trending markets. By ranking the RSI as a percentile, you gain contextual insight into whether the current strength is unusually high or low compared to recent history, rather than just a fixed 70/30 threshold.
Relative Strength MatrixThe Relative Strength Matrix (RSPS M) is a powerful comparison tool that analyzes and ranks up to 10 selected assets based on their relative performance. It does this by calculating price ratios between all asset pairs and applying a consistent strength criterion across each comparison. The results are displayed in a live-updating matrix, showing how each asset performs relative to the rest of the group.
By default, the indicator uses a momentum-based approach (via RSI) to evaluate strength, but it’s fully customizable. Users can modify the valuation logic by replacing the built-in ta.rsi function under the “Inputs your criterion below” section in the code. This makes the tool highly flexible—allowing for different styles of comparison such as trend-following, volatility-adjusted, or custom factor-based ranking methods.
Each asset’s total dominance score is color-coded and ranked, making it easy to spot outperformers and underperformers within any chosen basket. Whether you're tracking crypto pairs, sectors, or other groups, RSPS M provides a clear, objective framework for relative strength monitoring and rotation strategies—perfect for spotting leaders, laggards, and shifts in momentum across markets.
Relative Strength RatioWhen comparing a stock’s strength against NIFTY 50, the Relative Strength (RS) is calculated to measure how the stock is performing relative to the index. This is different from the RSI but is often used alongside it.
How It Works:
Relative Strength (RS) Calculation:
𝑅
𝑆
=
Stock Price
NIFTY 50 Price
RS=
NIFTY 50 Price
Stock Price
This shows how a stock is performing relative to the NIFTY 50 index.
Relative Strength Ratio Over Time:
If the RS value is increasing, the stock is outperforming NIFTY 50.
If the RS value is decreasing, the stock is underperforming NIFTY 50.
Relative Strength NSE:Nifty for TF CommunityThis is a modified version of the Relative Strength Indicator (No confusion with RSI) originally by in.tradingview.com/u/modhelius/ based on The indicator calculates the relative strength between a selected stock and a comparative symbol (typically a market index like NSE:NIFTY).
Relative strength (RS) compares the performance of two assets, typically a stock and a market index, by dividing their percentage changes over a specific period. This indicator oscillates around zero:
- Greater than 0: Indicates the stock has outperformed the comparative symbol.
- Less than 0: Indicates the stock has underperformed the comparative symbol.
Key Enhancements:
This Relative Strength Indicator offers practical features to automatically adjusts the comparison period based on the chart’s timeframe, whether daily, weekly, or monthly, so you don’t have to make manual changes.
Secondly, if the selected stock has fewer bars than the comparison period, the indicator uses the shorter period to ensure accurate results. The default colors are hardcoded so they look fine for both dark and white themes, but of course can be changed.
You can customise the settings to fit your needs. The default period is set to 50/52, and the comparative symbol is NSE:NIFTY, but both can be changed. There’s also an option to toggle a moving average on or off, providing a smoother visual representation.
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.
Relative Strength Market PickerModified to code from @modhelius and added colors and histogram for easy reading...thanks to him...
What is Relative Strength?
Relative strength is a ratio of a stock price performance to a market average (index) performance. It is used in technical analysis.
It is not to be confused with relative strength index.
To calculate the relative strength of a particular stock, divide the percentage change over some time period by the percentage change of a particular index over the same time period.
How to read this indicator for trading and decesion making?
There are four colors
Aqua: Shows the bullish momentum against the index of your choosing
Navy blue: Show the bearish momentum is weakning at the time period
Fuschsia : Shows the bullish gaining strength and about to cross zero line
Red: Shows the bearish momentum is strong.
Other indicators to be used along with this are
1. Pivot points
2. Moving Average of highs and lows -- 17 period
To take long calls --- There has to be high closing candle above the 17 period moving average of highs and there has to be bullish momentum and ideally with the pivot point as a support
To take short calls -- There has to low closing candle below the 17 period moving average of lows and there has to be bearish momentum and ideally with the pivot point as a resistance.
Relative Strength Index With Range ZoneRSI (Relative Strength Index) with 45-55 Range Zone
1. Introduction and Historical Background
The Relative Strength Index (RSI) is a momentum indicator developed in 1978 by J. Welles Wilder Jr. It measures the speed and magnitude of price changes to assess overbought and oversold conditions of an asset. This widely used oscillator ranges between 0 and 100.
Historically, the RSI was mainly used to detect trend reversals by identifying extreme levels: above 70 (overbought) and below 30 (oversold). However, its application has evolved, and new approaches refine its interpretation, such as adding a 45-55 neutral zone to identify consolidation (range) periods.
2. RSI Calculation
The RSI is calculated using the following formula:
RSI=100−(1001+RS)RSI=100−(1+RS100)
Where:
RS=Average gain over N periodsAverage loss over N periodsRS=Average loss over N periodsAverage gain over N periods
• RS (Relative Strength) is the ratio between the average gains and the average losses over N periods (typically 14 periods).
• Gains and losses are calculated based on daily price variations.
Example calculation with a 14-day period:
1. Compute daily gains and losses.
2. Take an exponential or simple moving average of these values over 14 days.
3. Apply the formula to get the RSI value.
3. Classic RSI Usage
The RSI is typically interpreted as follows:
• RSI > 70: Overbought → Possible correction or bearish reversal.
• RSI < 30: Oversold → Possible rebound or bullish reversal.
• RSI between 50 and 70: Bullish momentum.
• RSI between 30 and 50: Bearish momentum.
4. Adding the 45-55 Zone to Identify Range Phases
Adding a neutral zone between 45 and 55 helps identify consolidation periods, when price moves sideways without a strong trend.
• RSI between 45 and 55: The market is in a range, meaning neither buyers nor sellers dominate.
• RSI breaking out of this zone:
o Above 55: Indicates the start of a bullish trend.
o Below 45: Indicates the start of a bearish trend.
This zone is particularly useful for:
• Avoiding false signals by waiting for trend confirmation.
• Identifying ranging markets, favoring range trading strategies (buying at support, selling at resistance).
• Filtering trend-based entries, waiting for the RSI to exit the 45-55 zone.
5. Trading Strategies Using RSI with the 45-55 Range Zone
1. Range Trading:
• When the RSI oscillates between 45 and 55, it signals a lack of strong trend.
• Strategy:
o Identify a support and resistance level.
o Buy near support when the RSI touches 45.
o Sell near resistance when the RSI touches 55.
2. Breakout Trading:
• If the RSI exits the 45-55 zone:
o Above 55 → Buy (start of a bullish trend).
o Below 45 → Sell (start of a bearish trend).
• This breakout can be used as a confirmed entry signal.
3. Confirmation with Divergences:
• A bullish divergence (price making lower lows while RSI makes higher lows) is more relevant if the RSI moves above 55.
• A bearish divergence (price making higher highs while RSI makes lower highs) is stronger if the RSI drops below 45.
6. Conclusion
The RSI is a powerful tool for analyzing price momentum. Adding a 45-55 zone enhances its usage by clearly distinguishing:
• Consolidation phases (range markets).
• Trend beginnings when RSI breaks out of this range.
This approach improves RSI reliability by filtering out false signals and allowing traders to adapt their strategy based on market conditions.
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.
Relative Strength with 3 SMAMansfield RS with 3 SMAs
Overview
The Mansfield Relative Strength (RS) indicator with three Simple Moving Averages (SMAs) enhances traditional RS analysis by adding more clarity and precision to trend identification. This personalized version aims to define RS trends more clearly and end them sooner, helping traders make better-informed decisions.
Key Features
Relative Strength Calculation:
Comparison: Calculates the RS of a chosen symbol against a benchmark (default: S&P 500).
Normalization: Uses the stock’s closing price divided by the closing price of the benchmark over a specified period.
Three SMAs:
Periods: Configurable periods for three SMAs (default: 10, 20, 50).
Trend Smoothing: SMAs help smooth the RS line, making it easier to spot trends and potential reversals.
Visualization:
Area Plot: The RS line is displayed as an area plot.
Color Coding: Different colors for each SMA to distinguish them easily (yellow, orange, purple).
Customization Options:
Comparative Symbol: Choose any benchmark symbol.
Period Adjustment: Customize the periods for both the RS calculation and the SMAs.
Visibility: Option to show or hide the SMAs.
How to Use
Setup:
Add to Chart: Apply the indicator to your TradingView chart.
Customize: Adjust the comparative symbol, RS period, and SMA periods as per your preference.
Interpretation:
Rising RS Line: Indicates the stock is outperforming the benchmark.
Falling RS Line: Suggests underperformance.
SMA Crossovers: Watch for the RS line crossing above or below the SMAs to signal potential buy or sell points.
Trend Direction: SMAs help confirm the trend direction. A rising RS line above the SMAs indicates a strong relative performance.
Trading Strategy:
Trend Confirmation: Use SMA crossovers to confirm trends.
Divergence: Identify divergences between the price action and the RS line for potential reversal signals.
Relative Strength wrt ReferenceThis script evaluates the relative strength of the current symbol with respect to your chosen symbol. At the same time it gives an idea about the trend of the reference symbol.
Under default settings, it evaluates the strength with respect to NIFTY50.
While the value of the bars represents the relative strength, Colors of the bars indicate the relative strength status.
The condition action rules are as follows:
-Bar color blue implies that both the underlying and reference increased.
-Bar color green implies that the underlying increased but reference decreased.
-Bar color purple implies that both the underlying and reference decreased.
-Bar color red implies that the underlying decreased but reference increased.
On the other hand, the background colors indicate the general trend structure in the reference in terms of exponential moving averages and adx.
Green implies strong up trend.
Purple implies sideways to bullish trend.
Blue implies sideways to bearish trend
Red implies existing strong downtrend.
You can change the settings as per your choice.
RS - Relative Strength ScoreRelative strength (RS) is a measure of a stock's price performance relative to the overall market. It is calculated by dividing the stock's price change over a specified period by the market's price change over the same period. A stock with a high RS has outperformed the market, while a stock with a low RS has underperformed. (Stock can any asset that can be compared to a reference index like as Bitcoin, Altcoins etc ...)
Here are some advantages:
- Provides a measure of a stock's performance relative to a benchmark index or sector, allowing for a more accurate comparison of performance.
- Helps identify stocks with strong price momentum that are likely to continue outperforming the market in the short to medium term.
- Allows investors to identify the strongest performers within a particular sector or industry.
- Provides a quantitative and objective measure of a stock's performance, which can help reduce bias in investment decisions.
- Can be used in conjunction with other technical indicators and chart analysis to identify potentially profitable trades.
- Helps investors make more informed decisions by providing a more comprehensive picture of a stock's performance.
How to use it:
- The indicator can be used in daily and weekly timeframes.
- Check, if the default reference index is suited for your asset (Settings) The default is the combination of S&P500+Nasdaq+Dow Jones. For Crypto, it could be TOTAL (ticker for total stock market), for German stocks it could be DAX.
- Decide (settings), if you want to see the RS based on annual calculation (IBD style) or based only for the last quarter
Color coding:
- Red: Stock is performing worse than index (RS < 0)
- Yellow: Stock get momentum, starting to perform better than index (RS > 0)
- Green: Stock is outperforming the index
- Blue: Stock is a shooting star compared to index
- When RS turns positive and stays there, it could be an indication for an outbreak (maybe into a stage 2)
No financial advise. For education purposes only.
