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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.