Relative strength is a strategy used inย momentum investingย and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevantย benchmark.
1/n
A Mega Thread on RELATIVE STRENGTH
A method to improve
Stock Selection and Conviction in trades
Retweet ๐And Follow
@JayneshKasliwal
Relative strength is a strategy used inย momentum investingย and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevantย benchmark.
1/n
This is basically used for Identifying the strongest sector , stocks , asset class by comparing the relative performance
2/n
Type
โRelative Strengthโ
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 65 period
3/n
Using 65 as period and base as NiftyOne can use 123 or 250 as period depending upon your time frame of holding
If your view is short term then 65 works great and mid to long term can use 123 and 250 .
@kuttrapali26
4/n
Helps to filter out stocks in good momentum and that are giving better returns than nifty
These stocks tend to outperform the market.
These are potentially superstocks
65 period signifies 3 months of trading
In 3 months we have around 65 trading days
5/n
0 line that helps to differentiate between underperformer and outperformer
>1 Outperforming the markets
<0 Underperforming the markets
When 65 RS Goes above 2 its too much heated and generally goes into consolidation or pullback
@vivbajaj
6/n
Nifty Falling 10% but your Stock is not falling and staying sideways Means it has Strength to fight against the falling market.
When Market Recovers it already had strenght and hence it will moe more faster
7/n
Most Popular - Stock vs Index
(Example โ Reliance Vs Nifty 50)
Stock Vs Stock in same sector
(Example โLTI Vs Infy)
Stock Vs Stock across sectors
(Example โReliance Vs TataMotors)
LTI
Comparing IT stock vs NIFTY vs IT index
8/n
(Example โ NIFTY50 vs S&P 500)
Relationship across sectors
(Banking vs Telecom)
Relationship across asset classes
(Gold Vs Dow)
Relationship across segments of the market
(Mid-cap index vs Small cap index)
9/n
S&P500 Vs Nifty
The Highlighted part means that
Nifty Infra is outperforming the nifty 50 index in that period but underperforming the Psu bank index
That indirectly means that psubanks have outperformed both nifty and nifty infra and hence is the strongest
You can use CNX IT , PHARMA , INFRA to compare your stocks to specific Sector
11/n
Key point: Relative Strength tends to select high beta or low beta stocks, depending on the market trend.
When that trend undergoes a major reversal, Relative Strength will see its peak underperformance.
Because tops and bottoms are sharp and quick.
14/n
COMPARATIVE RELATIVE STRENGTH
One can Simply divide Stock Price by Index Price
This is known as ratio chart
15/n
use "/" Symbol to plot the ratio chart in symbol search
Reliance vs BalajiAmines
16/n
The RS calculates the relationship between price of the past โNโ period in our case 65
The CRS calculates the relation on daily basis price change and plots
CRS will show you the trend of the particular day while RS shows you trend of past 65 days
18
Example 1
Nifty Falls 10 % over a period but a stock a stock gains 10% . What does that mean ?
Nifty Stays Flat over a period but a stock gains 10% . What does that mean ?
Nifty Rises 10% over a period but your stock Rises 50% .
What does that mean ?
19/n
Buyers are still interested in the stock/ Sellers are weak and when market recovers these are the stocks which move Ahead much faster as they already have strength .
Stocks that are showing strength in weak market will outperform in strong market
20/n
NIFTY Fallen 11% from highs
CHAMBALFERT : Stays Flat
MANINFRA : Up 22% in weak market
PVR : Falls More than 25%
21/n
Screenshot From Telegram channel
Technical Test given to followers to select the best stock
A) outperformer as + RS
B) and C) At support and hence most chose that as an answer as swing trading bet
Over the next 10 days
A) JSL HISAR gave a + Return of 18%
22/n
More from JayneshKasliwal
๐๐ผ๐ ๐๐ผ ๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ ๐๐ผ๐๐ฟ ๐ผ๐๐ป ๐๐ต๐ฎ๐ฟ๐๐ถ๐ป๐ธ ๐ฆ๐ฐ๐ฟ๐ฒ๐ฒ๐ป๐ฒ๐ฟ
๐งต Thread ๐งต
[1/15]
๐๐ต๐ฎ๐ฟ๐๐ถ๐ป๐ธ ๐ฆ๐ฐ๐ฟ๐ฒ๐ฒ๐ป๐ฒ๐ฟ is a Stock screening tool that is useful to screen stocks based on Technical & Fundamentals.
๐ธ It scans stocks by using technical indicators like RSI, MACD, divergences, etc.
๐ธ It also uses fundamental tools like Book Value, EPS,PE etc
[2/15]
How To Create A Scan ?
Go to https://t.co/JJEJBg3Cd8 & click on ๐๐ณ๐ฆ๐ข๐ต๐ฆ ๐๐ค๐ข๐ฏ under ๐๐ค๐ณ๐ฆ๐ฆ๐ฏ๐ฆ๐ณ๐ด.
[3/15]
๐๐ถ๐ฟ๐๐ ๐ฆ๐๐ฒ๐ฝ ๐ง๐ผ ๐๐ถ๐น๐๐ฒ๐ฟ ๐ฆ๐๐ผ๐ฐ๐ธ๐
We can select segments of stocks of our choice, e.g. cash or futures stocks, Nifty 100 etc.
Click on green โ+โ icon to add conditions.
[4/15]
๐๐ฎ๐ป๐ฑ๐น๐ฒ ๐ง๐ถ๐บ๐ฒ๐ณ๐ฟ๐ฎ๐บ๐ฒ๐ & ๐๐ผ๐บ๐ฝ๐ฎ๐ฟ๐ถ๐๐ผ๐ป ๐ข๐ฝ๐ฒ๐ฟ๐ฎ๐๐ผ๐ฟ๐๐ธ We can select any timeframe of candles in Chartink, from minutes to years.
๐ธ And compare two candles using comparison operators like ๐๐ฒ๐ถ๐ข๐ญ ๐ต๐ฐ or ๐๐ณ๐ฆ๐ข๐ต๐ฆ๐ณ ๐๐ฉ๐ข๐ฏ , crossovers etc
[5/15]
๐งต Thread ๐งต
[1/15]
๐๐ต๐ฎ๐ฟ๐๐ถ๐ป๐ธ ๐ฆ๐ฐ๐ฟ๐ฒ๐ฒ๐ป๐ฒ๐ฟ is a Stock screening tool that is useful to screen stocks based on Technical & Fundamentals.
๐ธ It scans stocks by using technical indicators like RSI, MACD, divergences, etc.
๐ธ It also uses fundamental tools like Book Value, EPS,PE etc
[2/15]
How To Create A Scan ?
Go to https://t.co/JJEJBg3Cd8 & click on ๐๐ณ๐ฆ๐ข๐ต๐ฆ ๐๐ค๐ข๐ฏ under ๐๐ค๐ณ๐ฆ๐ฆ๐ฏ๐ฆ๐ณ๐ด.
[3/15]
๐๐ถ๐ฟ๐๐ ๐ฆ๐๐ฒ๐ฝ ๐ง๐ผ ๐๐ถ๐น๐๐ฒ๐ฟ ๐ฆ๐๐ผ๐ฐ๐ธ๐
We can select segments of stocks of our choice, e.g. cash or futures stocks, Nifty 100 etc.
Click on green โ+โ icon to add conditions.
[4/15]
๐๐ฎ๐ป๐ฑ๐น๐ฒ ๐ง๐ถ๐บ๐ฒ๐ณ๐ฟ๐ฎ๐บ๐ฒ๐ & ๐๐ผ๐บ๐ฝ๐ฎ๐ฟ๐ถ๐๐ผ๐ป ๐ข๐ฝ๐ฒ๐ฟ๐ฎ๐๐ผ๐ฟ๐๐ธ We can select any timeframe of candles in Chartink, from minutes to years.
๐ธ And compare two candles using comparison operators like ๐๐ฒ๐ถ๐ข๐ญ ๐ต๐ฐ or ๐๐ณ๐ฆ๐ข๐ต๐ฆ๐ณ ๐๐ฉ๐ข๐ฏ , crossovers etc
[5/15]
More from Rs
Relative Strength Line by @iArpanK v1.3
https://t.co/3q9UOn5GF7
This update enables adding a Moving Average to the indicator, as requested by several users.
Indicator settings (ADVANCED section)
- Toggle moving average on/off using the checkbox
- Change indicator type (Simple/Exponential/Weighted)
- Change indicator period
Project (now open source) : https://t.co/xHpPUU4ZdN
Change indicator pane : https://t.co/u0BqraiFce
All users are requested to remove and add the indicator again to their chart, in order to utilise the new v1.3.
Thanks!
https://t.co/3q9UOn5GF7
This update enables adding a Moving Average to the indicator, as requested by several users.
Indicator settings (ADVANCED section)
- Toggle moving average on/off using the checkbox
- Change indicator type (Simple/Exponential/Weighted)
- Change indicator period
Project (now open source) : https://t.co/xHpPUU4ZdN
Change indicator pane : https://t.co/u0BqraiFce
All users are requested to remove and add the indicator again to their chart, in order to utilise the new v1.3.
Thanks!
You May Also Like
โWe donโt negotiate salariesโ is a negotiation tactic.
Always. No, your company is not an exception.
A tactic I donโt appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but thatโs negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didnโt want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but itโs not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. [โฆ]
Always. No, your company is not an exception.
A tactic I donโt appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but thatโs negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didnโt want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but itโs not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. [โฆ]
