OPEN-SOURCE SCRIPT
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.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.