Anchored Relative StrengthThe Anchored Relative Strength (RS) Indicator is a tool designed for traders to compare the performance of a selected stock or security against a benchmark index or another security starting from a specific point in time.
Traditional Relative Strength
The traditional RS line is a popular tool used to compare the performance of a stock, typically calculated as the ratio of the stock's price to a benchmark index's price. It helps identify outperformers and underperformers relative to the market or a specific sector.
The Anchored Approach
The Anchored RS line enhances the traditional concept of the RS line by introducing an anchored approach, where calculations begin from a user-defined date. This feature provides the flexibility to start the comparison from a specific historical event, earnings, market peak, trough, or any date significant to the trader's analysis.
Calculating Relative Strength
The RS value is calculated by dividing the close price of the chosen stock by the close price of the comparative symbol (SPX by default). This calculation is performed for each bar since the Anchor Date.
Indicator Features
🔶Custom Start Date
🔶Custom Comparison Symbol
🔶RS Line Moving Average
🔶Comparison Symbol Line
🔶Customize Colors & Appearance
Users can change the anchor date simply by clicking on the indicator and dragging the anchor point.
Rsline
Webby's Quick & Grateful Dead RSWebby's Quick & Grateful Dead RS combines a Relative Strength Line and Moving Averages to help traders hold a core position in a winning stock by identifying moments of strength and weakness in a stocks advance.
The Relative Strength (RS) line is something many investors are familiar with. It is used to measure a stocks performance versus the S&P 500 (default setting) and is typically calculated by dividing the closing price of the stock by the closing price of the S&P. This means if a stock moves up and the S&P moves down or the stock moves up more than the S&P the RS line will increase, if the stock moves down while the S&P moves up the line will decrease.
While the RS Line by itself is a powerful tool, adding moving averages to the RS line can help better understand trends. This work was done by Mike Webster (Webby) as he tried to reverse engineer how William O'Neil was able to hold some of his biggest winning positions.
This indicator plots the RS line along with two moving averages and clearly labels and alerts the 3 signals shared by Webby:
Quick Break - RS line crosses below the fast moving average
Quicksand - RS line moves lower than it was at the time of the Quick Break
Grateful Dead Break - RS line crosses below the slow moving average
To ensure your chart doesn't get skewed, please use the multiplier in the setting to adjust the vertical offset of the RS line and moving averages.
Webby's RS LineThe Relative Strength (RS) line is something many investors are familiar with. It is used to measure a stocks performance versus the S&P 500 and is typically calculated by dividing the closing price of the stock by the closing price of the S&P. This means if a stock moves up and the S&P moves down or the stock moves up more than the S&P the RS line will increase, if the stock moves down while the S&P moves up the line will decrease.
While the standard RS line is a powerful tool, Mike Webster recently discussed how he has made changes to the standard RS line and also uses a 21 exponential moving average of the RS line to help guide his decision making. This script puts those new twists on the standard RS line, by first calculating the RS line using the low of both the security and the S&P rather than the closing prices. Next it measures the 21-day exponential moving average of the RS line and plots the distance between the two as a histogram.
A strong trending stock that is out performing the market will see an extended period of a positive blue histogram signifying the RS line is above the 21-ema.
While on the other hand a stock in a downtrend that is underperforming will see a negative red histogram a red histogram signifying the RS line is below the 21-ema.
On top of all of that, the indicator also keeps 3 & 13 exponential moving average of the distance between the RS line and the 21 ema to help identify shorter term relative strength and capture more immediate shifts in momentum. Both of those are plotted on the histogram as well and will change color as they rise and fall making it easy to spot the direction.
Indicator options include:
Choose symbol to measure performance against
Change histogram colors
Choose ema line width
* Note this indicator does not plot the actual RS line, it is the histogram representing the distance between the RS line calculated using the lows and the 21 ema, as well as the two ema's of the relationship.
TAPLOT Relative Strength New High Multi LookbackThis 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.
Relative Strength Moving Average CrossoverA popular technical analysis strategy is the moving average crossover. This indicator combines a crossover with the Relative Strength Line, created by William O’Neil. The RS Line is a tool used to compare the price action of a particular stock to that of an index, with the S&P 500 being the index preferred by O'Neil.
When one moving average crosses above or below another, that may be a signal of a trend change. For example, when a shorter-term moving average (aka faster moving average) of price moves up and through a longer-term moving average (aka slower moving average), it is likely the price is trending up, this is referred to as a crossover. The opposite can also be a potential signal of a change in the trend. When a shorter-term moving average crosses under a longer-term moving average, the price may be heading down. We refer to this as a negative crossover or crossunder.
This indicator allows configuration of up to two moving averages for the RS Line. Using two moving averages you can quickly identify the direction of the trend and also pinpoint where the faster moving average crosses over or under the slower moving average.
While beta testing this indicator, we performed a study using Bitcoin. In 2021 we’ve seen an increasing correlation of BTC and the S&P 500. This is most likely due to the fact that both crypto and stocks are riskier than other financial assets such as bonds and commodities. When the market is risk-off, both the S&P 500 and Bitcoin tend to sell off together.
For the BTC test case we used two moving averages of the RS Line, 8-EMA and 50-SMA. In the chart that follows you can see a breakdown of how this played out over the last ~2 years. A positive divergence is indicated by the 8-EMA of RS crossing above the 50-SMA, and vice versa for a negative divergence.
Here's another example using TSLA:
Features
■ Configure up to two moving averages for each timeframe.
■ Optional symbols indicate moving average crossovers.
■ Configure custom alerts on crossovers, for any timeframe.
■ Optional moving average cloud makes it easy to identify if slower moving average is above/below faster moving average.
■ Configurable index, defaulting to S&P 500 (SPX).
Acknowledgement
This project is a collaborative effort with @blakedavis17 a Crypto-Equity Analyst. Based on a discussion with Blake about a moving average crossover using the RS Line, we created a simple indicator to explore the concept further. We were very encouraged with the results of backtesting and decided to publish the indicator as we believe it may be a helpful tool for both equity and crypto traders.
Relative Strength Line by @iArpanKHello Traders!
I'm a Momentum Trader, following the Indian & US markets. Most of us are familiar with the Relative Strength (RS) indicator, popularized by Investor's Business Daily (IBD) and available on their MarketSmith platform. So, here I'm sharing a script that does the same and additionally pops an alert label when the RS line hits a new high (similar to Blue Dot appearance on MarketSmith charts).
User Settings
Inputs tab
Base Symbol : Symbol of the security/index with which you want to compare your current active symbol.
Period : Number of days since which you want to scan for a new high (default is 250 days, which approximately pops alerts for new 52 week high in RS). For example, if you want to look for new 10 days high in RS, set the Period to 10.
Style tab
RS Line : Change color using the palette provided (default is blue).
Alert Label : Show/hide alert labels by checking/unchecking the box. Change color using the palette provided. Change alert label symbol.
Precision : Default is two decimal places. Can be changed as per requirement.
Usage
The indicator consists of two components- the Relative Strength (RS) line & alert labels on new RS highs. Relative strength gives a measure of how the underlying security is performing with respect to a base index or security. For example, how is NSE:DIXON performing w.r.t NSE:NIFTY or how is NASDAQ:AAPL performing w.r.t. the TVC:SPX .
A rising RS line tells us that the underlying entity is outperforming the base entity. Similarly, a declining RS line shows under-performance of the underlying entity. A new high in RS (especially before a new high in price) often gives valuable information about the underlying security's strength w.r.t. the general market, and can tip us off to a possible breakout in the price in near future.
Making RS lists (list of stocks making new high in RS on heavy down days in index) can be very helpful to sort out leaders that are best resisting the decline and are likely to move up aggressively when the market turns favorable.
The concept of RS is extensively used by momentum traders and growth stock traders. When used in conjunction with price & volume action, this can be a very powerful tool in your trading arsenal. You can now easily spot RS trends and new highs visually by simply adding this indicator to your chart!
Conclusion
If you like this script, click on Add to favorite indicators , so that you can easily add this indicator from your favorites tab right away.
Thanks!
TraderLion's Relative Strength LineRelative Strength Line
Introduction
The script adds a line/candlestick to your charts that shows how well a stock is acting relative to the Index. We call this Relative Strength Line.
Relative Strength ( RS ) separates leading stocks from laggards. Stocks showing RS during a market correction phase will often be the strongest movers once the general market is ready to cooperate.
Instructions on How To Add this Script to Your TradingView Charting Platform
Step 0: Head over to www.tradingview.com
Step 1: Add “TraderLion's Relative Strength Line” to your Favorites by clicking “Add to Favorite Scripts” near the bottom of the page.
Step 2: Click “Indicators” at the very top on TradingView. Under Favorites click “Relative Strength Line”
Step 3: Hover on the Indicator name ( Relative Strength Line) on your plot under legend and click the three dots at the very right. Under the “Pin To Scale” choose a setting that works best for you (optional).
Step 4: Done. You have now plotted the Relative Strength Line
Features
1) The Pink Dot symbolizes the RS Line reaching new highs before price. RS New Highs Before Price (RSNHBP) is often indicative of a break out emerging.
2) Direction-Based Relative Strength. The RS Line can be customized to color coat depending on its most recent direction. When the line moves up it will be blue, and on the way down pink. Easily glance and see phases of relative strength on the chart.
3) Raw RS Rating - The RS Line Script features an RS Rating from 1-99 with 99 being the strongest rating. The measures the stock’s performance relative to the Index you input.
3) Custom Index Input under Settings - requested feature!
4) Candlestick Relative Strength - A different unique way to view the Relative Strength Line
5) Alerts Conditions - Relative Strength New Highs and Relative Strength New Highs Before Price (RSNHBP)
