This indicator will compare your Stock or ETF to any other security of your choice. The indicator a stock's price action to that of the S&P 500. A rising line tells you the stock is outperforming the benchmark index. When looking for stocks to swing trade, I like to build my watchlist from stocks that are showing a rising/strong Relative Strength line.
What differentiates this indicator from others that are available out there is:
Ability to choose any benchmark index to compare to (from ticker pick field in settings)
Plotting Relative Strength New High (Relative Strength NH) and Relative Strength New High Before Price (RS NHBP) on the Relative Strength line by looking back at 3 different lookback periods (3 months, 6 months, and 12 months)
Plotting all history occurrences of RS NH and RS NHBP
By being able to plot NHs from all 3 lookback periods gives you an early heads up on stocks that started to outperform the market early on (3 months RS NHs). The indicator then switches to 6 months plotting Crosses for NHs and then to 12 month lookback when 12 month Relative Strength New Highs are present. The Relative Strength line itself will be plot on all of your chart timeframes however the RS NH and RS NHBP are only plotted on Daily and Weekly charts.
The indictor is very customizable - you are able to adjust:
Benchmark to compare to
Lookback period (default to Multi/All)
Change the width of Relative Strength line and color
Change the size of Dashes, Crosses, and Circles plotted on RS line
Change the color of NH and NHBP plots
Force Relative Strength NH/NHBP shapes to Circles for all lookback periods
This is version 1.0 and initial release. Please report any bugs in the comments section below. Hope you find this useful. Here is an example of NFE showing early signs of strength from late Feb 2022 with 3 month Dashed signals then 6 month outperformance with Crosses and finally 12 months outperformance with Circles.
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A bit of style cleanup.
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Working with TradingView on fixing a typo in the indicator title. Should saw New High not New Nigh
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Per popular demand I've added the option of a Moving Average. The RS moving average is turned off by default, double click the indicator and scroll to the bottom of the setting windows, check the box to enable it. You can control MA Length, Type and Color. Here is how it looks on ARRY with 20 SMA
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I’ve recently watched Mike Webster on IBD Live discuss how he uses the 21 EMA of an RS line that is calculated from the “low” price vs “close” price as a way to show if the stock is outperforming vs underperforming relative to the market. I like the concept so I am enhancing our RS line to change color depending on its location vs its 21 EMA (daily time frame) or 10 week MA (on weekly time frame).
Blue RS line means it is above the 21 EMA = stock is outperforming
Red RS line means it is below the 21 EMA = stock is underperforming
Awesome work. Is it possible to get Vertical Offset option like JohnMuchow and TraderLion's RS Line? This allows you to overlay it on your main chart and have it sit below price similar to MarketSmith. This is the only reason I'm not using it for my RS Line yet. Thanks and great work!
TaPlot
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@lbz321, I tried and didn't work lol. Not sure why. I'll give it another shot over the weekend and see if i can figure out why.
Great work as always! A question - is there an option to get a written number of the RS line, I find sometimes an actual number helps me choose between stocks better if several seem to have high RS and good RS slope. Thank you!
This has become my favorite RS line. Thanks for sharing it. From my studies I've recently observed that breakouts seem to work better when the last trading day has a positive relative strength. I wonder if another feature that could be added is coloring the last trading day green or red based on its relative strength similar to how Jack Corsellis RS Line does it (but only the last trading day)? Either that or some other way to indicate it's positive or negative? If you don't have time, please consider making this script open source. Thank you for all you do!
bhaavinashar
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How do you select 10W EMA ? is it visible only when we are on weekly tf?