Webby's Quick & Grateful Dead RS combines a Relative Strength Line and Moving Averages to help traders hold a core position in a winning stock by identifying moments of strength and weakness in a stocks advance.
The Relative Strength (RS) line is something many investors are familiar with. It is used to measure a stocks performance versus the S&P 500 (default setting) and is typically calculated by dividing the closing price of the stock by the closing price of the S&P. This means if a stock moves up and the S&P moves down or the stock moves up more than the S&P the RS line will increase, if the stock moves down while the S&P moves up the line will decrease.
While the RS Line by itself is a powerful tool, adding moving averages to the RS line can help better understand trends. This work was done by Mike Webster (Webby) as he tried to reverse engineer how William O'Neil was able to hold some of his biggest winning positions.
This indicator plots the RS line along with two moving averages and clearly labels and alerts the 3 signals shared by Webby:
Quick Break - RS line crosses below the fast moving average
Quicksand - RS line moves lower than it was at the time of the Quick Break
Grateful Dead Break - RS line crosses below the slow moving average
To ensure your chart doesn't get skewed, please use the multiplier in the setting to adjust the vertical offset of the RS line and moving averages.
릴리즈 노트
⋅
Update includes moving averages for different time frames and an increased default offset multiplier.
It limited the amount of coins I could send to 500, so here is another comment with more coins. Again, amazing job putting out this stuff. For those of us that are seasoned and successful traders, we know the immense value of what you built with just a few of your free ones.
joecjr
⋅
I was in the BlueSky 6 event and saw your talk and some of the indicators you've developed. Amazing job! What do you think of adding the R
illy5d
⋅
Is it possible to allow alerts for each condition (quick break, quicksand etc..)
Amphibiantrading
⋅
@illy5d, alerts are already there. You will use the any function call. (Default option when you set an alert on the indicator) will alert you when any of the 3 conditions are met
illy5d
⋅
Is it possible to add the option to color the RSline based on if it stays below a ma? say yellow if its below the fast ma and red when its below the slow ma?
Amphibiantrading
⋅
@illy5d, great idea! Will get this done in the next update
illy5d
⋅
would it be possible to allow for setting different moving average values for each time frame (daily, weekly, monthly)?