The Relative Strength Line or RS line shows the strength of the stock compared to an index like the S&P500. If the line is making new highs, that means that the stock is outperforming the index. Even if the stock price is falling, if the RS line flattens or rises, that means that the index is falling harder. But when the RS line goes down, the base security outperforms the stock. We can find this indicator in many of the charting services, along with the stock’s price, moving averages, etc. The line is derived by dividing the stock price by the S&P 500 Index value.
Do not get confused – Relative Strength Line and RSI (Relative Strength Index) are not the same indicator.
Bill O’Neal RS line indicator is a pillar of the CAN SLIM methodology. Even Mark Minervini, one of the greatest traders of all time, only looks at stocks with a relative strength of no less than 70, but preferably in the 90s
This great indicator is regularly published by IBD (Investor Business Daily), however it’s been made available in the Tradingview platform too. It would be great to get a verson for Prorealtime.
The following are the Tradingview versions:
John Muchow version and code
https://www.tradingview.com/script/cClLGtbd-RS-Line-Gauge-Performance-vs-Index/
TraderLion version, the code of this one has not been published. The biggest plus of this indicator is that it is not limited to the relationship with S&P500 you can use whatever market index you like
https://www.tradingview.com/script/N4Iqr5Cz-TraderLion-s-Relative-Strength-Line/
Is anybody capable of converting the Tradingview code to Prorealcode? Or, based on the available information creating the RS line indicator for Prorealtime from scratch?
Thanks!
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