This Relative Strength Comparison (RSC) indicator overlays a simple moving average (SMA) of the prior days values and changes color when the RSC crosses above and below that value as an indicator with bearish and bullish signals in comparison to another symbol.
Release Notes
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Fixed a major calculation error in the RSC formula. It was an indicator, and it definitely seemed to provide some value, but it was not doing what I intended for it to do.
So when its green, it outperforms the index and orange the index outperforms the ticker? for example on August 1 and 2 price is dropping but RS is stil green, so that means its dropping less than the index you use?
Can you help us by explaining what orange line means when it is above zero and below zero.
chuckination
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@asheth1962, that's pretty simple. The raw indicator is noisy, and as a smoothing filter, I added a simple moving average of the indicator that defaults to 10 days. When the raw indicator crosses over the moving average, it means the value is spiking higher than the recent short term trend indicating a potential reversal in the comparison between the two instruments.
davdin
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Nice indicator! What about the input "Comparison Period"? What's the meaning and how can be set?