OPEN-SOURCE SCRIPT
Actualizado Relative Strength vs Index-SQB
What is Relative Strength (RS)?
Imagine you open your chart of Infosys (INFY) and you want to know — is this stock actually strong, or is it just going up because the whole IT sector is going up?
That's exactly what RS tells you.
The formula is simply:
RS = Stock's % change − Index's % change (over same period)
Stock Δ% and Index Δ%
Say you set the lookback to 63 bars (~3 months):
Infosys went up +12% in last 63 days → that's your Stock Δ%
Nifty IT index went up +7% in the same 63 days → that's your Index Δ%
RS Value = 12 − 7 = +5 → Infosys is outperforming its sector by 5%
Another example:
Infosys went up +3%
Nifty IT went up +7%
RS Value = 3 − 7 = −4 → Infosys is underperforming its sector by 4%, even though the price went up
So a stock can be going up in price but still be WEAK if the index is going up faster. This is the key insight RS gives you.
What the RS line on the price chart does
Instead of reading numbers, you get a smooth line plotted on your candle chart — just like a 50 EMA or 200 EMA. When candles are above the RS line, the stock is in a strong phase relative to the index. When candles fall below the RS line, it means relative weakness is setting in. It acts as dynamic support/resistance based on relative momentum.
Imagine you open your chart of Infosys (INFY) and you want to know — is this stock actually strong, or is it just going up because the whole IT sector is going up?
That's exactly what RS tells you.
The formula is simply:
RS = Stock's % change − Index's % change (over same period)
Stock Δ% and Index Δ%
Say you set the lookback to 63 bars (~3 months):
Infosys went up +12% in last 63 days → that's your Stock Δ%
Nifty IT index went up +7% in the same 63 days → that's your Index Δ%
RS Value = 12 − 7 = +5 → Infosys is outperforming its sector by 5%
Another example:
Infosys went up +3%
Nifty IT went up +7%
RS Value = 3 − 7 = −4 → Infosys is underperforming its sector by 4%, even though the price went up
So a stock can be going up in price but still be WEAK if the index is going up faster. This is the key insight RS gives you.
What the RS line on the price chart does
Instead of reading numbers, you get a smooth line plotted on your candle chart — just like a 50 EMA or 200 EMA. When candles are above the RS line, the stock is in a strong phase relative to the index. When candles fall below the RS line, it means relative weakness is setting in. It acts as dynamic support/resistance based on relative momentum.
Notas de prensa
Instead of trying to force-fit an RS value (which is a % difference number) onto a price axis, the correct and clean method is:Keep RS in the oscillator panel below (first script) — that's always accurate
On the price chart, use candle coloring + background shading to show RS strength visually — no scaling issues possible
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.