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bharatTrader
16 de Jul de 2020 07:03

Relative Strength of a stock 

BHARAT ELECTRONICSNSE

Descrição

Determine the relative strength of a stock vis-a-vis a larger benchmark. Default is NIFTY50.

Notas de Lançamento

Cosmetic changes to make the display pretty and input choices in more logical sequence.

Notas de Lançamento

This version adds input as source type. So you can compare typical values, amongst other input values. Some cosmetic changes also naming of the plots etc.

Notas de Lançamento

  • Added colour coding of crossover RS
  • Added label to mark reference date based on length input from the last bar

Notas de Lançamento

  • Beautified the input dialog
  • Added Support to plot trend on RS line

The trend on RS line is the arctan value of current bar to previous range (default 5 bars) back. If the radians is positive a green colour zero line is plotted else maroon is plotted.

Notas de Lançamento

  • Pine script version 5
  • NBC: Default length of SMA for RS changed to 50 from 61
  • Added price-action indication for added confirmation along with RS, Provision to switch-off this completely from input dialog

Inputs for Price Confirmation
check box = Checked means enabled (default), uncheck to turn-off full feature
Period = Keep default value. Length on SMA for price confirmation.
Green color selector +ve = Bullish color and transparency selector
Red color selector -ve = Bearish color and transparency selector
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Description of Price Confirmation behavior
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In addition to the existing RS behavior, it is now possible to superimpose price-action behavior on the RS line.
As per existing RS, RS above zero indicates outperformance/strength over the selected benchmark and RS below zero indicates underperformance/weakness over the selected benchmark for the selected period.
Now, added a simple logic for price-action (check code for details)
If one uses price-action with RS, it is possible better manage the trade, time the entry and book partial profits or exit.
Price action is indicated by bubbles over the RS line. Green bubbles = Bullish Price Action. Red bubbles = Bearish Price Action.
When
RS is above zero and we have Green bubbles ==> Bullish trend in both price action and RS
RS is below zero and we have Red bubbles ==> Bearish trend in both price action and RS
RS is above zero and we have Red bubbles ==> Caution on the Bullish RS, ripe for profit booking, full exit or just caution.
RS is below zero and we have Green bubbles ==> Price indicating bullishness, RS yet to turn positive. Ripe for tracking position, partial entry, promotion in watchlist etc.

Notas de Lançamento

  • Show trend color on RS MA

If the trend for moving average of RS is rising for 3 periods, plot in green. If falling for 3 periods, plot in red. Default is blue.
Comentários
bunts047
beautiful indicator and I just love it
bharatTrader
@bunts047, Thanks!
Trader685
Hi - I have been testing out various RS indicators here and yours has some very useful features - however could you kindly clarify what the 'period' input is actually for?

Is the the RS of the stock ve the ave of the index over this 'period'?
bharatTrader
@blue_hektor, So, the "Period" is the length of the simple moving average to be plotted for the RS plot. Same like we have sma for price charts.
ratheeshjaganath
Hello Mr. Niranjan. I was tryig to set up the ARS and SRS. ARS dats is 22nd Dec 2020(110 days), but when I input 110 days, the label displays 18th Dec 2020 instead of 22nd Dec 2020. Can you pls help. SRS is 123 days which is 4th Dec but label displays 1st Dec. Can you pls help.
HarshMShah
Thank you Niranjan bhai
nithinLearns
Hello Niranjan,
How can I convert this to weekly RS? I mean keeping the 123 same( in days), I want to show it in weekly.
bharatTrader
@nithinLearns, Change to weekly TF, adjust length accordingly.
gnsanghavi
I am based in India and use it to map against Nifty50. I use in Weekly time frame and have accordingly, modified to Period of 52. Very useful indicator. I have few questions:
a. What is the interpretation of RS Trend with value 5 in a Weekly chart ?
b. What is the interpretation of RS Mean - Show Moving Average - Is it the Mean of RS over the selected period or is it the SMA of Price over period ?
Thank You in advance
bharatTrader
@gnsanghavi, Thanks for kind words.
a. It is the arctan of the slope of RS plot 5 weeks apart. A positive value means slope is increasing, negative means slope is decreasing.
b. The RS Mean is the SMA of RS plot for the input period. It helps to smoothen the RS plots.
Mais