LuxAlgo

Relative Strength Orbital Graph [LUX]

The Relative Strength Orbital Graph is an inspired recreation of the popular Relative Rotation Graphs trading tool, coded from the ground up in Pine Script™.

This graphical tool shows how some user-selected securities perform against a selected benchmark using two relative performance metrics, the JdK-RS Ratio and JdK-RS Momentum.

Note that these metrics are proprietary & this script is purely an estimate.

Settings

  • Length: Period of the JdK-RS Ratio and JdK-RS Momentum metrics
  • Symbols: Symbols used for the computation of the graph, each settings line allows to determine whether the symbol is to be display 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.

Usage

This tool depicts a simple scatter plot using the JdK-RS Ratio as X-axis and JdK-RS Momentum for the Y-axis.

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 situated in the green quadrant would indicate that the security is leading the benchmark in strength, with positive strength momentum.

A point situated in the yellow quadrant would indicate that the security is leading the benchmark in strength, with negative strength momentum.

A point situated in the blue quadrant would indicate that the security is lagging behind the benchmark in strength, with positive strength momentum.

A point situated 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 RS-Momentum relative to the RS-Ratio. The user can hover the diamond patterns and see the recency of that point as well as its property depending on its position on the graph.

Details

Our JdK-RS 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 JdK-RS Momentum estimate is simply obtained from the ratio between the previously estimated JdK-RS Ratio and its wma , this ratio is then multiplied by 100.


Here we use a different color for each security trail.

Script de código aberto

Dentro do verdadeiro espírito TradingView, o autor deste script publicou ele como um script de código aberto, para que os traders possam compreender e checar ele. Um viva ao autor! Você pode usá-lo gratuitamente, mas a reutilização deste código em uma publicação é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.

Aviso legal

As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.

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