(CD|RS Signal) Caruso Divergence Relative Strength Signal
CD|RS Signal allows for plotting horizontal bars to isolate periods where a security is forming a positive divergence from its benchmark, therefore, producing positive Relative strength when accounting for the security's volatility.
Investors can set how many 'pivots' or lows back to use when making an analysis. CD|RS Signal has an algorithm to identify pats market lows and automatically line them up with a stock's low around the same period of time. This allows for divergence analysis across many past lows and helps to isolate positive price divergences that are not so clear in choppy sideways trading action. CD|RS Signal helps an investor to identify when a security does not make a lower low vs a benchmark that has made a lower low over a similar period.
To help visualize the meaning behind the indicator, CD|RS Signal can be plotted in a separate pane, ideally over the benchmark itself. Traditionally the S&P500 is used for US stock analysis. By overlaying CD|RS Signal over the S&P 500, investors can more easily view which S&P 500 lows the stock is currently showing a positive divergence with.
This indicator allows you to select both your benchmark for comparing against as investors may prefer a commodity crypto currency or another stock. As well, users cans elect as far back to make the analysis by selecting the pivot lookback (how many prior ‘pivots’ or ‘market lows’ back to compare against).
In addition, to perform the historical study, investors can turn on historical HLs in the settings enabling all past CD|RS signals to show. This helps an investor to visualize how this has functioned on a security in the past.
Investors can set how many 'pivots' or lows back to use when making an analysis. CD|RS Signal has an algorithm to identify pats market lows and automatically line them up with a stock's low around the same period of time. This allows for divergence analysis across many past lows and helps to isolate positive price divergences that are not so clear in choppy sideways trading action. CD|RS Signal helps an investor to identify when a security does not make a lower low vs a benchmark that has made a lower low over a similar period.
To help visualize the meaning behind the indicator, CD|RS Signal can be plotted in a separate pane, ideally over the benchmark itself. Traditionally the S&P500 is used for US stock analysis. By overlaying CD|RS Signal over the S&P 500, investors can more easily view which S&P 500 lows the stock is currently showing a positive divergence with.
This indicator allows you to select both your benchmark for comparing against as investors may prefer a commodity crypto currency or another stock. As well, users cans elect as far back to make the analysis by selecting the pivot lookback (how many prior ‘pivots’ or ‘market lows’ back to compare against).
In addition, to perform the historical study, investors can turn on historical HLs in the settings enabling all past CD|RS signals to show. This helps an investor to visualize how this has functioned on a security in the past.
Release Notes:
Version 2.0
■ Support for all symbol types.
■ Add option to change RT line color and width.
■ Support for all symbol types.
■ Add option to change RT line color and width.
Get access to CarusoInsights indicators: www.carusoinsights.com/charting/