OPEN-SOURCE SCRIPT
Relative Strength vs TOPIX
# Relative Strength vs TOPIX
This indicator measures a stock's performance relative to the TOPIX Index by plotting the ratio of the stock's closing price to the TOPIX closing price.
The indicator helps investors identify whether a stock is outperforming or underperforming the broader Japanese equity market. A rising line indicates the stock is gaining strength relative to TOPIX, while a falling line suggests relative weakness.
### How to Use
* Rising Relative Strength Line = Outperformance vs TOPIX
* Falling Relative Strength Line = Underperformance vs TOPIX
* New highs in Relative Strength often signal improving investor sentiment before earnings revisions or estimate upgrades.
* Divergences between price and relative strength can help identify potential leadership changes within a sector.
### Best Applications
* Japanese consumer and retail stocks
* Sector rotation analysis
* Identifying market leaders and laggards
* Screening for stocks attracting institutional buying
### Formula
Relative Strength = Stock Close ÷ TOPIX Close
This indicator automatically updates when the chart symbol changes, making it ideal for comparing multiple stocks against the Japanese market benchmark.
This indicator measures a stock's performance relative to the TOPIX Index by plotting the ratio of the stock's closing price to the TOPIX closing price.
The indicator helps investors identify whether a stock is outperforming or underperforming the broader Japanese equity market. A rising line indicates the stock is gaining strength relative to TOPIX, while a falling line suggests relative weakness.
### How to Use
* Rising Relative Strength Line = Outperformance vs TOPIX
* Falling Relative Strength Line = Underperformance vs TOPIX
* New highs in Relative Strength often signal improving investor sentiment before earnings revisions or estimate upgrades.
* Divergences between price and relative strength can help identify potential leadership changes within a sector.
### Best Applications
* Japanese consumer and retail stocks
* Sector rotation analysis
* Identifying market leaders and laggards
* Screening for stocks attracting institutional buying
### Formula
Relative Strength = Stock Close ÷ TOPIX Close
This indicator automatically updates when the chart symbol changes, making it ideal for comparing multiple stocks against the Japanese market benchmark.
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Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
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.