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RS55 - Relative Strength vs Benchmark (for US Stocks)
RS55 (or RS 55) is a powerful momentum indicator used in swing trading to identify stocks that are outperforming (or underperforming) a benchmark index over the past 55 trading days. It is not the same as the Relative Strength Index (RSI). RSI measures internal price momentum (overbought/oversold on a 0-100 scale). RS55 measures external relative strength — how a stock is performing compared to the broader market (e.g., Nifty 50 in India or S&P 500 in the US).
### Why RS55 is powerful (the "Power of RS 55")
- When RS55 is positive (above the zero line, usually colored green), the stock has outperformed the benchmark over the last 55 days.
- When RS55 is negative (below the zero line, usually colored red), the stock has underperformed.
- Back testing shows that stocks turning RS55 positive often continue strong momentum, especially when combined with other confirmations like RSI(14) > 50 and an up trending price. This is why it's called the "Power of RS 55" — it filters for true market leaders with high conviction.
### Mathematical calculation of RS55
The formula is straightforward and compares percentage performance over exactly 55 bars (usually daily):
[
\text{Stock Perf}{55} = \frac{\text{Close}{\text{today}}}{\text{Close}{55 \text{ bars ago}}}
]
[
\text{Benchmark Perf}{55} = \frac{\text{Benchmark Close}{\text{today}}}{\text{Benchmark Close}{55 \text{ bars ago}}}
]
[
\text{RS55} = \left( \frac{\text{Stock Perf}{55}}{\text{Benchmark Perf}{55}} \right) - 1
]
- Multiply by 100 to show as percentage outperformance.
- RS55 > 0 → Stock outperformed the benchmark in the last 55 days (green/strong).
- RS55 < 0 → Stock underperformed (red/weak).
This is plotted as a line or histogram in a separate pane below the price chart, with a clear zero line.
### Why RS55 is powerful (the "Power of RS 55")
- When RS55 is positive (above the zero line, usually colored green), the stock has outperformed the benchmark over the last 55 days.
- When RS55 is negative (below the zero line, usually colored red), the stock has underperformed.
- Back testing shows that stocks turning RS55 positive often continue strong momentum, especially when combined with other confirmations like RSI(14) > 50 and an up trending price. This is why it's called the "Power of RS 55" — it filters for true market leaders with high conviction.
### Mathematical calculation of RS55
The formula is straightforward and compares percentage performance over exactly 55 bars (usually daily):
[
\text{Stock Perf}{55} = \frac{\text{Close}{\text{today}}}{\text{Close}{55 \text{ bars ago}}}
]
[
\text{Benchmark Perf}{55} = \frac{\text{Benchmark Close}{\text{today}}}{\text{Benchmark Close}{55 \text{ bars ago}}}
]
[
\text{RS55} = \left( \frac{\text{Stock Perf}{55}}{\text{Benchmark Perf}{55}} \right) - 1
]
- Multiply by 100 to show as percentage outperformance.
- RS55 > 0 → Stock outperformed the benchmark in the last 55 days (green/strong).
- RS55 < 0 → Stock underperformed (red/weak).
This is plotted as a line or histogram in a separate pane below the price chart, with a clear zero line.
نص برمجي مفتوح المصدر
بروح TradingView الحقيقية، قام مبتكر هذا النص البرمجي بجعله مفتوح المصدر، بحيث يمكن للمتداولين مراجعة وظائفه والتحقق منها. شكرا للمؤلف! بينما يمكنك استخدامه مجانًا، تذكر أن إعادة نشر الكود يخضع لقواعد الموقع الخاصة بنا.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
نص برمجي مفتوح المصدر
بروح TradingView الحقيقية، قام مبتكر هذا النص البرمجي بجعله مفتوح المصدر، بحيث يمكن للمتداولين مراجعة وظائفه والتحقق منها. شكرا للمؤلف! بينما يمكنك استخدامه مجانًا، تذكر أن إعادة نشر الكود يخضع لقواعد الموقع الخاصة بنا.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.