OPEN-SOURCE SCRIPT
Relative Strength Leadership Engine (Open Source)
Relative Strength Leadership Engine (Open Source)
The Relative Strength Leadership Engine is a context-first indicator designed to evaluate whether a symbol is behaving like a market leader relative to a benchmark index (default: SPY).
Instead of producing trade signals, this tool answers a higher-level question:
Is relative strength leadership present — and is the broader market environment supportive right now?
Leadership is expressed through permission states (FULL / CAUTION / BLOCKED), accompanied by clear, deterministic diagnostics that explain why leadership is permitted or denied.
What Makes This Tool Different
Most relative strength indicators focus on a single dimension (RS line, ratio, or new-high detection).
This engine evaluates leadership across multiple independent layers, including:
Relative strength vs a benchmark baseline
Volatility-normalized RS momentum
Proximity to relative strength highs and leadership freshness
Multi-horizon confirmation (daily / weekly / monthly)
Optional benchmark timing filter (risk-on vs risk-off context)
Leadership is granted only when multiple conditions align, and denied when evidence weakens.
Permission-Based Output (Not Signals)
This indicator does not generate entries, exits, or trade recommendations.
Instead, it provides leadership permission states:
ENGAGE — leadership conditions are supportive
OBSERVE / WAIT — leadership exists but timing or quality is degraded
STAND DOWN — leadership is broken or unsupported
When leadership is permitted, the panel confirms that all required conditions are supportive.
When leadership is denied, the primary failure is explicitly identified.
How to Use
This tool is intended for upstream decision-making, such as:
Filtering leadership candidates before applying setups
Monitoring leadership quality and aging
Avoiding forced participation during unfavorable market conditions
Adding regime and participation context to discretionary or systematic workflows
Permission is fail-closed by design and only granted when evidence supports it.
Alerts (Informational Only)
Optional alerts notify users of state transitions (e.g., leadership entering FULL or CAUTION), relative strength new highs, or momentum re-acceleration events.
All alerts are descriptive and informational, not trading instructions.
Important Notes
Indicator only — no orders, no trade execution
No repaint or lookahead logic
Educational and informational use only — not financial advice
The Relative Strength Leadership Engine is a context-first indicator designed to evaluate whether a symbol is behaving like a market leader relative to a benchmark index (default: SPY).
Instead of producing trade signals, this tool answers a higher-level question:
Is relative strength leadership present — and is the broader market environment supportive right now?
Leadership is expressed through permission states (FULL / CAUTION / BLOCKED), accompanied by clear, deterministic diagnostics that explain why leadership is permitted or denied.
What Makes This Tool Different
Most relative strength indicators focus on a single dimension (RS line, ratio, or new-high detection).
This engine evaluates leadership across multiple independent layers, including:
Relative strength vs a benchmark baseline
Volatility-normalized RS momentum
Proximity to relative strength highs and leadership freshness
Multi-horizon confirmation (daily / weekly / monthly)
Optional benchmark timing filter (risk-on vs risk-off context)
Leadership is granted only when multiple conditions align, and denied when evidence weakens.
Permission-Based Output (Not Signals)
This indicator does not generate entries, exits, or trade recommendations.
Instead, it provides leadership permission states:
ENGAGE — leadership conditions are supportive
OBSERVE / WAIT — leadership exists but timing or quality is degraded
STAND DOWN — leadership is broken or unsupported
When leadership is permitted, the panel confirms that all required conditions are supportive.
When leadership is denied, the primary failure is explicitly identified.
How to Use
This tool is intended for upstream decision-making, such as:
Filtering leadership candidates before applying setups
Monitoring leadership quality and aging
Avoiding forced participation during unfavorable market conditions
Adding regime and participation context to discretionary or systematic workflows
Permission is fail-closed by design and only granted when evidence supports it.
Alerts (Informational Only)
Optional alerts notify users of state transitions (e.g., leadership entering FULL or CAUTION), relative strength new highs, or momentum re-acceleration events.
All alerts are descriptive and informational, not trading instructions.
Important Notes
Indicator only — no orders, no trade execution
No repaint or lookahead logic
Educational and informational use only — not financial advice
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.