The original idea from this script is from the script "Percentage Relative Strength" by dman103. The original script compared a symbol to an index by their everyday percentage change. The symbol percentage was subtracted from percentage change of the index, & the results were then smoothed by moving averages.
Instead of daily percentage changes, this script directly calculates relative strength via a moving average. We call this simpler approach as MARS (Moving Average Relative Strength).
MARS compares a symbol to the index by making use of the price's distance from a moving average. By default, we compare the distance from the 50-day simple moving average of the stock vs that of the index. Both the type & the length of the moving average is customisable.
Background color indicates the index being above or below its moving average.
Blue background: index is above its moving average
Pink background: index is below its moving average
The histogram indicates whether the stock is under-performing or out-performing the index.
Up-bars: stock is out-performing the index i.e. between the stock & the index, the difference between the distance to/from the 50-day moving average is a positive value.
Down-bars: stock is under-performing the index i.e. between the stock & the index, the difference between the distance to/from the 50-day moving average is a negative value.
The color of the histogram indicates the type of out-performance or under-performance. There can be a total of 6 such colors:
Relative out-performance: both index & stock are bearish, but stock is less bearish. The script prints light green up-bars on a pink background.
Gross out-performance: both index & stock are bullish, but stock is more bullish. The script prints green up-bars on a blue background.
Absolute out-performance: index is bearish, but stock is bullish! The script prints blue up-bars on a pink background.
Relative under-performance: both index & stock are bullish, but stock is less bullish. The script prints light red bars on a blue background.
Gross under-performance: both index & stock are bearish, but stock is more bearish. The script prints dark red bars on a pink background.
Absolute under-performance: index is bullish, but stock is bearish! The script prints black down-bars on a blue background.
Additional customisation options:
Paint bars option changes the bar colors to mirror the histogram colors.
Easy colors option just changes the histogram colors to either blue or pink, indicating out-performance or under-performance, respectively. This is when the trader does not wish to demarcate between the above-mentioned 6 conditions.
릴리즈 노트
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Minor bug fixes in the code.
릴리즈 노트
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Added an option to change the colour of the Zero line.
릴리즈 노트
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⦿ Default plot display is now a line style, instead of the previous histogram style. This is still user-customisable.
⦿ Moving average for smoothing of MARS is now incorporated. By default, it uses a 9 EMA of MARS. If the MARS stays above its moving average, it indicates that MARS is going up, & is a bullish sign.
⦿ Text description of the current relative strength state is visible as a table. It is a verbose table by default (with details of the current MARS state). You can turn off the detailed text or even turn off the entire table altogether.
⦿ Easy color mode is modified & turned on by default. Easy colors are now really 'easy', as the strong & weak colors are now represented by green & red, respectively.
Hi Nitin, Thanks for providing this wonderful indicator. I was trying to port this to Amibroker using AFL. But I could not understand indexgreen = request.security(indexToUse, timeframe.period, priceIsAboveIndexMa) line. There are three conditions:
priceIsAboveMa = close > ma ------- > This checks if stock's close price is above it's moving average (Whatever is selected from settings). priceIsAboveIndexMa = closeIndex > maIndex ----> This checks if index ( for comparison) close price is above the moving average ( as selected in options). indexgreen = request.security(indexToUse, timeframe.period, priceIsAboveIndexMa) ---- >> What this means ?
Tech_Milind
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Hi, Nitin, Great work!!! 👍 Can I use this indicator on weekly chart? Shall I need to change settings or remain same? Thank you 👍
ganeshsocialid
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Your ID says what I felt after landing to your TV page.... that I finally found finallynitin :)
TUSHG9
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good indicator. can you add 20 EMA for crossover as well into this?
subh2501
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thanks
tiwariamit369
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Ok
cajole
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Interesting. This is similar to the Mansfield relative strength indicator described by Stan Weinstein.
Bevertje
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hi Nitin, looks very good, is it possible to get buy and sell signs for auto trading ?
pranavgulabani
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Looks very interesting and helpful. Thanks for Sharing Nitin.
priceIsAboveMa = close > ma ------- > This checks if stock's close price is above it's moving average (Whatever is selected from settings).
priceIsAboveIndexMa = closeIndex > maIndex ----> This checks if index ( for comparison) close price is above the moving average ( as selected in options).
indexgreen = request.security(indexToUse, timeframe.period, priceIsAboveIndexMa) ---- >> What this means ?