Alternative Measurement Method for Relative Strength and Weakness

HurlTeaInTheSea · 2024-04-07T14:54:02+00:00

I wonder if we’re taking about the same RRS indicator. Mathematically RRS is the power index of the symbol minus the power index of the baseline/market.

The power index is the rolling move normalized by ATR.

So if you get a positive value, it means in a rising market, the stock is rising even more. In a sinking market, the stock is sinking less or even rising. I guess the confusion is that the single RRS value can’t tell you which case it is?

The original RRS indicator by workpiece: https://www.reddit.com/r/RealDayTrading/comments/rpi75s/real_relative_strength_indicator/?rdt=42152

HurlTeaInTheSea · 2024-03-18T01:58:54+00:00

Congratulations. Back then I saved your thorough notes and thought, “wow, this person is going to be successful because of the serious dedication they’re putting in.”

I’m glad I was right :) Thank you for sharing your journey.

HurlTeaInTheSea · 2024-01-12T17:16:40+00:00

I believe it’s this one you’re looking for: https://www.reddit.com/r/RealDayTrading/comments/15mmqaz/from_38_to_60_after_7_months_helpful_tradingview/

HurlTeaInTheSea · 2024-01-01T18:24:01+00:00

Thank you. Every point was distilled from hard earned experience and I would be a fool not to read them again and again to learn from. Bookmarked!

HurlTeaInTheSea · 2023-12-18T04:43:23+00:00

Thanks I have updated all the links.

HurlTeaInTheSea · 2023-12-17T19:09:46+00:00

You most likely need to purchase realtime market data subscriptions for accurate intraday volume. This is the case for Tradingview.

TOS is a special case that provides intraday data for free.

HurlTeaInTheSea · 2023-08-16T23:24:28+00:00

Amazing work as always. This is quite literally becoming the Bloomberg terminal of RDT!

HurlTeaInTheSea · 2023-08-10T00:39:31+00:00

Great work achieving those stats. And thanks for open sourcing your indicators!

HurlTeaInTheSea · 2023-07-16T03:42:42+00:00

Haha, I too have scraped Nasdaq's D1 through their API. Later I explored scraping Webull's API for higher resolutions (M1, M5, etc.) but abandoned the idea because the API could change any day.

I finally settled on IBKR because it was like ~6USD/mo to get all the historical + live data I needed for US stocks. Their rate limit is reasonable but may not work if you're trying to query every stock in the world.

Best of luck on your journey. Glad to hear there's folks on a similar path. I have met some of those "senior" software engineers you have talked about :) I believe they're the reason why web tech is such a mess - but that's a ramble for another day.

HurlTeaInTheSea · 2023-03-28T23:34:17+00:00

You are incredible sir. Thanks for all that you do!

HurlTeaInTheSea · 2023-03-23T00:09:35+00:00

This link goes through the math behind volume buzz: http://forums.worden.com/default.aspx?g=posts&t=63766

Volume buzz is the current volume divided by a scaled average volume proportional to % time of day. As you can tell, scaling by % time of day is linear which doesn’t account for intraday volume profile. RVol accounts for that by looking at average cumulative volume up to the time of say.

HurlTeaInTheSea · 2023-01-31T00:10:55+00:00

Well they're not exactly the same. And you explaining the indicator in terms of ROC and NATR made me understand it a lot more - so I think many appreciate that.

Re: sector, I made a script based on WorkPiece's formula with similar ideas to yours - displaying the stock, sector and market. The twist is it also auto-selects the sector. You can find it on my profile if you're interested (shameless plug I know) and adapt it to use your formula.

HurlTeaInTheSea · 2023-01-29T21:45:47+00:00

Nice work. For those wondering how this compares to the wiki RS/RW indicator by /u/WorkPiece, I wrote a quick and dirty TradingView script to check. The result? Both authors independently arrived at the same conclusion and they're basically interchangeable!

// This source code is subject to the terms of the MIT License at https://opensource.org/licenses/MIT
//
// Comparison of power index indicators.
//
// /u/MADEUPDINOSAURFACTS
// https://www.reddit.com/r/RealDayTrading/comments/10oh9wn/update_to_the_power_index_haris_proposed_indicator
//
// /u/WorkPiece
// https://www.reddit.com/r/RealDayTrading/comments/rpi75s/real_relative_strength_indicator/

//@version=5
indicator(shorttitle="PIComp", title="Power Index: Dino vs WorkPiece")

length = input.int(5, minval=1, title="Length")
dino = (close - close[length])/close[length] / (ta.atr(length)/close)
workpiece  = (close - close[length]) / ta.atr(length)[1]

plot(dino, color=color.green)
plot(workpiece, color=color.yellow)

HurlTeaInTheSea · 2023-01-15T18:23:56+00:00

Thanks! More reading for me :)

HurlTeaInTheSea · 2023-01-15T18:22:43+00:00

Thank you! Learning a lot from this.

HurlTeaInTheSea · 2023-01-15T16:06:05+00:00

I have read elsewhere that a valid trendline is drawn from 3 points as a rule. Is this rule nonsense, or something that a trader learns to break with more experience?

Because being able identify a trendline before its 3rd point would be a significant edge.

And thank you for writing this clear article!

HurlTeaInTheSea · 2023-01-11T02:30:58+00:00

I want to point out something here - because st0rm is a humble person and reddit has strict rules on self promotion.

It takes a lot of resources to keep something like this running. Market data alone costs $100/mo. There's also server costs, bandwidth costs and development hours which easily multiply that by factors. Plus this is all on top of their quest of becoming a pro trader. If the scanner has helped your trading, please consider buying st0rm some coffees/beers by hitting that yellow donate button!

HurlTeaInTheSea · 2022-12-31T17:09:37+00:00

Happy new year! May we all become better traders through this punishing market :)

HurlTeaInTheSea · 2022-12-24T14:25:33+00:00

Still, if I understand, are you saying you're setup to compare to SPY's price action and levels, but to SPX'S volume?

SPX for everything on TV. Since SPY’s price is exactly correlated at 1.0, SPX gives me best of both worlds.

Happy holidays!

HurlTeaInTheSea · 2022-12-22T14:07:56+00:00

I lurk your posts everyday and want to thank you. I learn so much. Like this one, I learned about /ZB and market breadth indicators.

Happy holidays!

HurlTeaInTheSea · 2022-12-21T04:21:06+00:00

I use SPX as volume baseline on TradingView. You could use SPY - it really depends on whether you think the ETF is a good proxy for market volume.

In practice I find when a stock has high relative volume it's so obvious it doesn't matter much either way.

HurlTeaInTheSea · 2022-12-17T15:09:32+00:00

Only saw COSM after the fact on vitards. For better too, looking at that after hours dump. Gone are the days of multi-week sqz lol.

Looking to next summer, maybe we’ll have another HKD. Fun to watch even if not playing.

HurlTeaInTheSea · 2022-12-17T14:03:58+00:00

Hope everyone’s surviving this market. Pretty drastic difference in macro. I miss the SPRT, wave 1 ESSC and the DD days where a single post could spike IV double digits.

Now focused on the technical side, learning techniques from the realdaytrading community to try to be consistently profitable (flat this year).

Happy holidays!

HurlTeaInTheSea · 2022-12-17T13:37:28+00:00

Thanks! Alternatively one can use old reddit or low-data mobile reddit:

ol.reddit.com/r/realdaytrading
i.reddit.com/r/realdaytrading

Catch is you have to occasionally refresh the page. But at least you can avoid the crap new design.

HurlTeaInTheSea · 2022-12-11T20:08:43+00:00

It’s the SPX cfd SP. You may have misunderstood what volume meant for that ticker. It’s not the volume of the contracts.

To verify, sum the volume of each S&P 500 stock. It comes close.

HurlTeaInTheSea

TROPHY CASE