Relative 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.
Информация о релизе
version 2
Obsolete - deleted annual vs quarterly selection, now only annual is being used - deleted source selection, close is now always been used
New - Select Relative Strength based on index, i.e. selected reference ticker - Select Relative Strength based on sector, automatically calculated using sector ETFs - Table is showing the asset type and sector with the corresponding RS values
В истинном духе TradingView автор этого скрипта опубликовал его с открытым исходным кодом, чтобы трейдеры могли понять, как он работает, и проверить на практике. Вы можете воспользоваться им бесплатно, но повторное использование этого кода в публикации регулируется Правилами поведения. Вы можете добавить этот скрипт в избранное и использовать его на графике.
Все виды контента, которые вы можете увидеть на TradingView, не являются финансовыми, инвестиционными, торговыми или любыми другими рекомендациями. Мы не предоставляем советы по покупке и продаже активов. Подробнее — в Условиях использования TradingView.