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.
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Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.