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RS Cycles [QuantVue]

The RS Cycles indicator is a technical analysis tool that expands upon traditional relative strength (RS) by incorporating Beta-based adjustments to provide deeper insights into a stock's performance relative to a benchmark index. It identifies and visualizes positive and negative performance cycles, helping traders analyze trends and make informed decisions.
Key Concepts:
Traditional Relative Strength (RS):
Definition: A popular method to compare the performance of a stock against a benchmark index (e.g., S&P 500).
Calculation: The traditional RS line is derived as the ratio of the stock's closing price to the benchmark's closing price.
RS=Stock Price/Benchmark Price
Usage: This straightforward comparison helps traders spot periods of outperformance or underperformance relative to the market or a specific sector.
Beta-Adjusted Relative Strength (Beta RS):
Concept: Traditional RS assumes equal volatility between the stock and benchmark, but Beta RS accounts for the stock's sensitivity to market movements.
Calculation:
Beta measures the stock's return relative to the benchmark's return, adjusted by their respective volatilities.
Alpha is then computed to reflect the stock's performance above or below what Beta predicts:
Alpha=Stock Return−(Benchmark Return×β)
Significance: Beta RS highlights whether a stock outperforms the benchmark beyond what its Beta would suggest, providing a more nuanced view of relative strength.
RS Cycles:
The indicator identifies positive cycles when conditions suggest sustained outperformance:
Short-term EMA (3) > Mid-term EMA (10) > Long-term EMA (50).
The EMAs are rising, indicating positive momentum.
RS line shows upward movement over a 3-period window.
EMA(21) > 0 confirms a broader uptrend.
Negative cycles are marked when the opposite conditions are met:
Short-term EMA (3) < Mid-term EMA (10) < Long-term EMA (50).
The EMAs are falling, indicating negative momentum.
RS line shows downward movement over a 3-period window.
EMA(21) < 0 confirms a broader downtrend.
This indicator combines the simplicity of traditional RS with the analytical depth of Beta RS, making highlighting true relative strength and weakness cycles.
Key Concepts:
Traditional Relative Strength (RS):
Definition: A popular method to compare the performance of a stock against a benchmark index (e.g., S&P 500).
Calculation: The traditional RS line is derived as the ratio of the stock's closing price to the benchmark's closing price.
RS=Stock Price/Benchmark Price
Usage: This straightforward comparison helps traders spot periods of outperformance or underperformance relative to the market or a specific sector.
Beta-Adjusted Relative Strength (Beta RS):
Concept: Traditional RS assumes equal volatility between the stock and benchmark, but Beta RS accounts for the stock's sensitivity to market movements.
Calculation:
Beta measures the stock's return relative to the benchmark's return, adjusted by their respective volatilities.
Alpha is then computed to reflect the stock's performance above or below what Beta predicts:
Alpha=Stock Return−(Benchmark Return×β)
Significance: Beta RS highlights whether a stock outperforms the benchmark beyond what its Beta would suggest, providing a more nuanced view of relative strength.
RS Cycles:
The indicator identifies positive cycles when conditions suggest sustained outperformance:
Short-term EMA (3) > Mid-term EMA (10) > Long-term EMA (50).
The EMAs are rising, indicating positive momentum.
RS line shows upward movement over a 3-period window.
EMA(21) > 0 confirms a broader uptrend.
Negative cycles are marked when the opposite conditions are met:
Short-term EMA (3) < Mid-term EMA (10) < Long-term EMA (50).
The EMAs are falling, indicating negative momentum.
RS line shows downward movement over a 3-period window.
EMA(21) < 0 confirms a broader downtrend.
This indicator combines the simplicity of traditional RS with the analytical depth of Beta RS, making highlighting true relative strength and weakness cycles.
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オープンソーススクリプト
TradingViewの精神に則り、この作者はスクリプトのソースコードを公開しているので、その内容を理解し検証することができます。作者に感謝です!無料でお使いいただけますが、このコードを投稿に再利用する際にはハウスルールに従うものとします。
Get Access to the exclusive QuantVue indicators: quantvue.io/
Join thousands of traders in our Free Discord: discord.gg/tC7u7magU3
Join thousands of traders in our Free Discord: discord.gg/tC7u7magU3
免責事項
これらの情報および投稿は、TradingViewが提供または保証する金融、投資、取引、またはその他の種類のアドバイスや推奨を意図したものではなく、またそのようなものでもありません。詳しくは利用規約をご覧ください。