OPEN-SOURCE SCRIPT
Equilibrium Price for Relative Strength
Atualizado
Plot of equilibrium price of Relative Strength.
Instead of the RS ratio, this is the plot of the price that will make the RS ratio equal to zero, we call this the equilibrium price.
About the equilibrium price plot:
- When the plot is below the symbol price plot, it means stock is performing above the benchmark
- When the plot is above the symbol price plot, it means stock is underperforming in comparison to the benchmark
- When the plot is close (or equal) to the symbol price plot, it means that RS is near the zero line, either crossing over or crossing below
The latest equilibrium is displayed over the plot. This gives a visual and quantitative idea of how far above or below the equilibrium price is in comparison to the current price.
In the above example, we see that HDFC Bank which was performing above the benchmark (trading above equilibrium price) whipsawed a lot (price near equilibrium price), before swaying down during the COVID-19 fall in the market (price is trading below the equilibrium price) . Currently, the equilibrium price is 1136, but HDFC Bank is trading below this price at 1033, around 100 points below.
Instead of the RS ratio, this is the plot of the price that will make the RS ratio equal to zero, we call this the equilibrium price.
About the equilibrium price plot:
- When the plot is below the symbol price plot, it means stock is performing above the benchmark
- When the plot is above the symbol price plot, it means stock is underperforming in comparison to the benchmark
- When the plot is close (or equal) to the symbol price plot, it means that RS is near the zero line, either crossing over or crossing below
The latest equilibrium is displayed over the plot. This gives a visual and quantitative idea of how far above or below the equilibrium price is in comparison to the current price.
In the above example, we see that HDFC Bank which was performing above the benchmark (trading above equilibrium price) whipsawed a lot (price near equilibrium price), before swaying down during the COVID-19 fall in the market (price is trading below the equilibrium price) . Currently, the equilibrium price is 1136, but HDFC Bank is trading below this price at 1033, around 100 points below.
Notas de Lançamento
- Equilibrium Price, upto 2 places of decimal
- Minor typo fix
Script de código aberto
No verdadeiro espírito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam compreendê-lo e analisá-lo. Parabéns ao autor! Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.
Quer usar esse script no 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.