OPEN-SOURCE SCRIPT
Hidden Relative Strength [ST]
**Hidden Relative Strength [ST]** is a professional Relative Strength indicator inspired by institutional trading logic (SMB Capital concepts).
It is designed to uncover "Hidden Accumulation" by comparing a stock's performance against a benchmark (SPY/QQQ), but with a crucial mathematical twist: **ATR Normalization**.
### 🧩 The Problem with Standard RS
Most Relative Strength indicators simply divide Stock Price by Index Price (`Stock / SPY`).
* **The Flaw:** High-beta stocks (like TSLA or NVDA) are naturally more volatile. In a standard ratio chart, this volatility is often mistaken for strength, generating false signals just because the stock moves faster than the index.
### 💡 The Solution: ATR Normalization
This indicator levels the playing field by normalizing price movement based on volatility.
* It calculates how many "ATRs" the stock moved versus how many "ATRs" the benchmark moved.
* **Formula:** `(Stock Change / Stock ATR) - (Benchmark Change / Benchmark ATR)`
* The result is accumulated into a single Dark Blue trend line.
### 📚 How to Use (The "Down Day" Scanner)
This tool shines when the broad market is weak.
1. **Market Sell-Off:** Look for days when the SPY/QQQ is dropping (Red Day).
2. **Divergence:** If the **Hidden RS [ST]** line is rising or holding flat while the market drops, it reveals a hidden institutional bid.
3. **Action:** Add these stocks to your priority watchlist. They are often the first to explode higher once market pressure lifts.
### ⚙️ Standardization [ST]
* **Fast Reaction:** Uses a default 5-period ATR (Simple Moving Average) to capture shifts quickly, matching the SMB "Fast" logic.
* **Visuals:** Features a clean Dark Blue line with an optimized Y-axis scale (10x multiplier) for easy reading of daily changes.
* **Benchmark:** Defaults to **QQQ** (Nasdaq), but can be changed to SPY or IWM in settings.
---
*Disclaimer: This tool is for educational purposes and technical analysis assistance only. Always manage your risk.*
It is designed to uncover "Hidden Accumulation" by comparing a stock's performance against a benchmark (SPY/QQQ), but with a crucial mathematical twist: **ATR Normalization**.
### 🧩 The Problem with Standard RS
Most Relative Strength indicators simply divide Stock Price by Index Price (`Stock / SPY`).
* **The Flaw:** High-beta stocks (like TSLA or NVDA) are naturally more volatile. In a standard ratio chart, this volatility is often mistaken for strength, generating false signals just because the stock moves faster than the index.
### 💡 The Solution: ATR Normalization
This indicator levels the playing field by normalizing price movement based on volatility.
* It calculates how many "ATRs" the stock moved versus how many "ATRs" the benchmark moved.
* **Formula:** `(Stock Change / Stock ATR) - (Benchmark Change / Benchmark ATR)`
* The result is accumulated into a single Dark Blue trend line.
### 📚 How to Use (The "Down Day" Scanner)
This tool shines when the broad market is weak.
1. **Market Sell-Off:** Look for days when the SPY/QQQ is dropping (Red Day).
2. **Divergence:** If the **Hidden RS [ST]** line is rising or holding flat while the market drops, it reveals a hidden institutional bid.
3. **Action:** Add these stocks to your priority watchlist. They are often the first to explode higher once market pressure lifts.
### ⚙️ Standardization [ST]
* **Fast Reaction:** Uses a default 5-period ATR (Simple Moving Average) to capture shifts quickly, matching the SMB "Fast" logic.
* **Visuals:** Features a clean Dark Blue line with an optimized Y-axis scale (10x multiplier) for easy reading of daily changes.
* **Benchmark:** Defaults to **QQQ** (Nasdaq), but can be changed to SPY or IWM in settings.
---
*Disclaimer: This tool is for educational purposes and technical analysis assistance only. Always manage your risk.*
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
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Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.