Saral Relative Strength ComparisonRelative Strength Comparison
### Overview
The Relative Strength (RS) Indicator is a robust tool designed to measure the performance of sectors or stocks relative to a benchmark index. This indicator provides a comprehensive way to compare the relative strength of different sectors or stocks, with the default selection being the major sectors of the National Stock Exchange (NSE). It allows traders to analyze which sectors or stocks are outperforming or underperforming the benchmark over a specific period.
The RS compares how much a security's price has changed over a given period relative to the change in price of a benchmark over the same period. The result is expressed as a percentage, showing whether the security has outperformed or underperformed the benchmark. Positive RS values indicate outperformance, while negative values signal underperformance.
This indicator provides a dual representation of the data. RS values are displayed in both line charts and a table. The line charts provide a visual representation of trends, while the table offers a clear numerical comparison of the current, previous, and earlier RS values along with the rank of the sector/stock.
### Key Features
Benchmark & Sectors/Stocks Comparison:
Users can select a benchmark index (default: NIFTY 50) and up to 20 sectors or stocks for comparison. By default, the indicator includes the major sectors of NSE, but users can customize the selection as needed.
Customizable RS Calculation:
Users can set the period for RS calculation, with a default of 22 periods, providing flexibility to match different trading strategies.
Flexible Time Frame:
RS calculations are based on the time frame of the main chart, allowing users to seamlessly switch between different periods, from minutes to hours, days, weeks, or even months depending on their analysis needs.
Customizable Line Chart:
Users can adjust the width and color of the RS lines for each sector, making it easier to distinguish between different sectors on the chart.
Dynamic Table Display:
The indicator includes a toggle to display a table of RS values, with customizable position, toggle for background color coding, and selection for text color & size. This makes it easy to compare the RS values across multiple sectors at a glance.
Sorting Options:
The table can be sorted either by alphabetical order of sector/stock names or by their rank. The default sorting is by rank, but switching to alphabetical order helps to identify data of specific sector with ease.
Ranking System:
The table includes a column displaying the rank of each sector or stock based on their RS, with the top-performing items listed first by default. This helps users quickly identify market leaders and laggards.
Color-Coded Backgrounds:
The background color of the sector/stock names in the table corresponds to the colors of their RS lines on the chart, making it easy to correlate table data with the visual plots. Also, the table uses a color-coding system which shows ranks of RS Positive sectors with Green background and RS Negative sectors with Red background. Similarly, the maximum RS value of individual sector is highlighted in Navy Blue, the minimum in Aqua and other in Blue background. This visual aid helps users quickly identify the performance trend of individual sector.
Table Positioning:
The table can be positioned at different locations on the chart (Top Right, Middle Right, Bottom Right, Top Left, Middle Left, Bottom Left), ensuring it doesn't obstruct important chart data.
### Input - RS Parameters:
Benchmark: Ticker ID of the comparative security. The default benchmark is the NIFTY 50 index, but users can select any other ticker as the benchmark for comparison.
Period-RS: The period for calculating the RS line. The default period is 22, but users can adjust this to suit their trading strategy and to analyze different time horizons for sector performance.
Line Width: Determines the thickness of the RS line in the chart. The default width is 2, providing a clear visual distinction between different sectors.
### Input - Table Parameters:
Show Table: Toggle to display or hide the table, allowing users to switch between graphical and tabular data representations.
Table Sorting: Users can sort the table alphabetically or by RS rank. The default sorting is by rank.
Table Position: Allows users to select the position of the table on the chart. Options include Top Right, Middle Right, Bottom Right, Top Left, Middle Left, and Bottom Left. The default position is Middle Right.
Color Code for Background: The background of the sector/stock names corresponds to their plot colors for easy mapping between plot and table values. Rank of RS Positive sectors will be highlighted with Green background and RS Negative sectors will be highlighted with Red color. The background color of the RS values in the table will change based on their magnitude. The highest RS value is Navy Blue, the lowest is Aqua, and other is Blue. This visual aid helps users quickly identify the performance of which sectors are improving or deteriorating.
Text Color: Users can select the color of the text displayed in the table. The default text color is White, ensuring readability against various background colors.
Text Size: Allows users to choose the size of the text in the table. Options include Auto, Tiny, Small, Medium, and Large, with the default being Small. This customization ensures that the table remains legible on different chart sizes.
### Input - Sectors/Stocks:
Sector/Stock Selection: Users can select which sectors to include as well as how many sectors to include in the analysis. The default sectors are major sectors of the National Stock Exchange, India. The selected sectors will be plotted as RS lines on the chart and will also appear in the table.
Color: Allows users to choose the color for each sector's RS line, making it easy to distinguish between them on the chart.
### Acknowledgement
This indicator is developed based on the concept discussed by Mr. Subhadip Nandy in Trader's Talk with Mr. Rohit Katwal.
Underperformance
Saral Relative StrengthRelative Strength Indicator
### Overview
The Relative Strength (RS) Indicator is a robust tool designed to measure the performance of a security relative to a benchmark or another security. Unlike traditional indicators, this RS Indicator calculates the outperformance or underperformance in percentage terms, providing a clear and concise comparison.
The equation for calculation can be found in the code itself. This equation compares how much a security's price has changed over a given period (len) relative to the change in price of a benchmark over the same period. The result is expressed as a percentage, showing whether the security has outperformed or underperformed the benchmark. A positive RS value indicates outperformance, while a negative value signals underperformance.
Basically, this indicator is an enhanced version of 'Relative Strength' indicator of 'BharatTrader' Sir with added features like automatic divergence plotting, color-coded filled area and sector names for NSE F&O securities. Default values for some of the parameters are based on discussion by Subhadip Nandy Sir in Trader's Talk with Mr. Rohit Katwal.
### Input Parameters:
Source: The price of a security used in the calculation, with the default being the 'close' price.
Comparative Symbol: Ticker ID of the comparative security, with the default set to NIFTY 50.
Period-RS: The period for calculating the RS line, with a default of 22. The RS line measures the relative performance of the security against the benchmark, helping to identify outperformance or underperformance over time.
Period-MA: The period for calculating the Simple Moving Average (SMA) overlay on the RS line, with a default of 11. The SMA provides a smoothed view of the RS line, helping to identify trends more clearly.
Lookback - Zero Line Trend: Zero Line Trend look-back period, used to determine the angle of the RS line, with a default of 5. This parameter influences the color of the Zero Line based on whether the RS line’s angle is positive or negative.
Lookback - Divergence: Divergence look-back period, with a default of 2, used to detect divergence between the price and the RS line.
Display MA Line: Controls the display of the SMA line. When enabled, the SMA line is plotted over the RS line to indicate trend strength.
Toggle RS Color on MA Crossovers: Controls the color of the RS line. If disabled, the RS line is purple. If enabled, the RS line changes color based on its position relative to the SMA: green for RS > MA, red for RS < MA.
Display Zero Line Trend: Controls the display of the Zero Line. If disabled, the Zero Line is black. If enabled, the Zero Line’s color changes to green or maroon based on the RS line’s angle over time.
Display Divergence: Controls the display of divergence dots on the RS line, indicating potential reversal points.
Display Filled Area: Controls whether the area between the Zero Line and the RS line is filled with color. The fill color changes based on the relationship of the RS line with the SMA & Zero Line as given below.
- Dark Green: RS > 0 and RS > MA, indicating strong outperformance.
- Light Green: RS > 0 and RS < MA, indicating weakening outperformance.
- Dark Red: RS < 0 and RS < MA, indicating strong underperformance.
- Light Red: RS < 0 and RS > MA, indicating weakening underperformance.
Display Sector Name: Controls the display of sector names for NSE F&O securities, helping to plot RS with sectoral indices.
### Key Features:
RS Line:
The RS line represents the relative performance of a security against a benchmark over a specified period (default 22). It helps traders identify whether the security is outperforming or underperforming the benchmark.
SMA Overlay:
A Simple Moving Average (SMA) line is plotted over the RS line, with a default period of 11. The SMA provides a smoothed trend of the RS, making it easier to identify consistent performance trends.
Trend-Sensitive Zero Line:
The Zero Line’s color adapts based on the RS line’s trend:
- Green: Positive angle of the RS line, indicating upward momentum.
- Maroon: Negative angle, indicating downward momentum.
The color can be toggled, with an option to display the Zero Line in black.
Divergence Detection:
Automatically detects and highlights divergences.
- Positive Divergence: RS line rises while the price falls, marked by blue dots.
- Negative Divergence: RS line falls while the price rises, marked by black dots.
Color-Coded Fill Area:
The area between the RS line and the Zero Line is filled with color to visually distinguish different market conditions, with Dark and Light colors providing insight into the strength of the performance:
- Dark Green: Indicates strong outperformance (RS > 0 and RS > MA), suggesting the security is showing significant strength compared to the benchmark.
- Light Green: Indicates weakening outperformance (RS > 0 and RS < MA), signaling that while the security is still outperforming, its strength is diminishing.
- Dark Red: Indicates strong underperformance (RS < 0 and RS < MA), showing the security is significantly weaker than the benchmark.
- Light Red: Indicates weakening underperformance (RS < 0 and RS > MA), suggesting the security is still underperforming but may be regaining some strength.
Sectoral Strength:
Displays sector names for NSE F&O securities, helping users to compare the RS of individual securities with their respective sectoral indices. Comparative Security can be changed easily based on this sector name. Users need not to remember sector names for individual securities.
If any security is not categorized in a specific sector, CNX500 has been considered as a default sector for NSE F&O securities. For other securities, NIFTY50 has been considered as a default sector.
