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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.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.