OPEN-SOURCE SCRIPT
Relative Strength vs S&P 500 (SPX/ES)
Relative Strength vs S&P 500
This indicator measures the relative performance of an asset compared to the S&P 500, helping traders and investors identify whether an asset is outperforming or underperforming the broader market.
The calculation is based on a price ratio between the selected asset and the S&P 500, optionally normalized to a base value (100) for easier interpretation.
How to read it:
Above the baseline (100) → the asset is outperforming the S&P 500
Below the baseline (100) → the asset is underperforming the S&P 500
Rising line → strengthening relative performance
Falling line → weakening relative performance
Why it’s useful:
Helps focus on market leaders, not just assets that “look cheap”
Filters trades and investments in the direction of relative strength
Useful for swing trading, long-term investing, and portfolio allocation
Widely used in institutional and professional asset management
This indicator is best used as a trend and selection filter, in combination with technical setups (support/resistance, VWAP, structure).
This indicator measures the relative performance of an asset compared to the S&P 500, helping traders and investors identify whether an asset is outperforming or underperforming the broader market.
The calculation is based on a price ratio between the selected asset and the S&P 500, optionally normalized to a base value (100) for easier interpretation.
How to read it:
Above the baseline (100) → the asset is outperforming the S&P 500
Below the baseline (100) → the asset is underperforming the S&P 500
Rising line → strengthening relative performance
Falling line → weakening relative performance
Why it’s useful:
Helps focus on market leaders, not just assets that “look cheap”
Filters trades and investments in the direction of relative strength
Useful for swing trading, long-term investing, and portfolio allocation
Widely used in institutional and professional asset management
This indicator is best used as a trend and selection filter, in combination with technical setups (support/resistance, VWAP, structure).
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.