The 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 ๐ถCustom Start Date ๐ถCustom Comparison Symbol ๐ถRS Line Moving Average ๐ถComparison Symbol Line ๐ถCustomize Colors & Appearance
Users can change the anchor date simply by clicking on the indicator and dragging the anchor point.
There is some bug . if you draw this indicator on SPX chart , ideally it should show flat line coz you are comparing same symbol relative strength with itself but in this red is still plotting some values
Amphibiantrading
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@pareshbhangale, there isnโt a bug. The blue line is the rs line (itโs flat) the red line is just the closing trajectory of the SPX so itโs tracking the closes. If the SPX goes up the red line goes up, if it goes down it goes down but the RS (blue line) will stay flat
Mind-blowing tool, great for taking profits/trimming and identifying strength at key turning points.
Amphibiantrading
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@moderngrowthinvesting, thank you! Iโm glad you like it
ARSHAD7286
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damn its too good..love you mate. we can able to find the strong stocks when the market is under correction. can you update it like TAPLOT RS NEW High Multi lookBACK indicator?
Amphibiantrading
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@ARSHAD7286, it is still a work in progress, but I will definitely look at adding the look back for new RS highs