(CA|RS Signal) Caruso Adaptive Relative Strength Signal
CA|RS Signal is a new approach to relative strength analysis that incorporates a security’s volatility and correlation to a benchmark when performing RS analysis. Traditional RS methods compare the performance between two securities to identify which is outperforming on a percentage basis. although this is effective in many situations, some stocks are inherently less volatile and will not outperform a benchmark on a percentage basis. Accounting for a security's volatility and correlation to its benchmark through BETA allows for a more effective method to conduct RS analysis.
In order to build a tool that provides a robust signal, CA|RS Signal is a composite of RS from different time frames. The strongest trends have a security displaying RS across all timeframes measured. CA|RS Signal displays whether RS is identified along with how many internal components are currently identifying RS. This is helpful as a trend may progress from 3 components identifying RS down to only one as it wekas - providing early warning to an investor that RS is present but deteriorating.
CA|RS Signal is also adaptable to any time frame.
CA|RS Signal allows an investor to select which security will act as a benchmark. Traditionally, the S&P 500 is the benchmark for US stocks. International investors can select their local index of choice. Not equity investors can select a commodity, crypto token, or FX basket to get a different RS analysis.
In order to build a tool that provides a robust signal, CA|RS Signal is a composite of RS from different time frames. The strongest trends have a security displaying RS across all timeframes measured. CA|RS Signal displays whether RS is identified along with how many internal components are currently identifying RS. This is helpful as a trend may progress from 3 components identifying RS down to only one as it wekas - providing early warning to an investor that RS is present but deteriorating.
CA|RS Signal is also adaptable to any time frame.
CA|RS Signal allows an investor to select which security will act as a benchmark. Traditionally, the S&P 500 is the benchmark for US stocks. International investors can select their local index of choice. Not equity investors can select a commodity, crypto token, or FX basket to get a different RS analysis.
Disponível em Espaço Pago
Este indicador está disponível apenas para assinantes de Caruso Insights Custom Indicators. Assine para acessar este e outros scripts de CarusoInsights.
Get access to CarusoInsights indicators: carusoinsights.com/charting/
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Disponível em Espaço Pago
Este indicador está disponível apenas para assinantes de Caruso Insights Custom Indicators. Assine para acessar este e outros scripts de CarusoInsights.
Get access to CarusoInsights indicators: carusoinsights.com/charting/
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.