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.*
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.