# Relative Strength Scatter Plot

Plots user-selected symbols on a four-quadrant scatter of relative strength ratio versus momentum against a benchmark, in the spirit of relative rotation analysis. Configurable trails show each symbol rotating through leading, weakening, improving, and lagging phases. Built for rotation-minded traders comparing several markets at once.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 6, 2024.
- Access: free.
- Concepts: [Relative Strength Comparative](https://www.luxalgo.com/library/concept/relative-strength-comparative/) (primary), [Relative Rotation Graphs](https://www.luxalgo.com/library/concept/relative-rotation-graphs/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn575m007bvhsgixm1k0p5
- Page: https://www.luxalgo.com/library/indicator/relative-strength-scatter-plot/

**Relative Strength Scatter Plot** places user-selected symbols on a four-quadrant graph of [comparative relative strength](https://www.luxalgo.com/library/concept/relative-strength-comparative/) against momentum, both measured versus a benchmark of your choice. Inspired by [relative rotation graphs](https://www.luxalgo.com/library/concept/relative-rotation-graphs/), it shows at a glance which markets lead, which are fading, and which are quietly building strength.

## How to Trade the Relative Strength Scatter Plot?

- **Green quadrant**: leading the benchmark, strong relative strength ratio with positive momentum.
- **Yellow quadrant**: still ahead on strength but momentum is decaying, leadership at risk.
- **Blue quadrant**: lagging in strength while momentum improves, candidates rotating toward leadership.
- **Red quadrant**: lagging on both counts, the weakest corner of the graph.
- **Trails**: each symbol drags a configurable history behind it, so you watch its rotation through the quadrants rather than a single snapshot.

The RS-Ratio starts from the symbol's strength relative to the benchmark, smoothed with a linearly weighted moving average, normalized against a second WMA, and scaled by 100. RS-Momentum is derived from the ratio between the RS-Ratio and its own WMA, again scaled by 100: position on the X-axis, its momentum on the Y-axis.

## Relative Strength Scatter Plot Settings

- **Calculation Window**: the lookback used to compute the RS-Ratio and RS-Momentum metrics.
- **Symbols**: the tickers to plot, each line with its own visibility and color controls.
- **Benchmark**: the reference symbol, typically an index, that every computation compares against.
- **Trail Length**: how many historical data points each symbol displays.
- **Resolution**: the horizontal breadth of the graph.

## Frequently Asked Questions

### What does a symbol sitting in the red quadrant mean?

It is trailing the benchmark in both relative strength and momentum. Watch whether its trail bends toward the blue quadrant. Improving momentum while still lagging is often the first step of a rotation back toward leadership.

### Is this an official Relative Rotation Graph?

No. It is inspired by Relative Rotation Graphs® but has no affiliation with JOOS Holdings B.V. It is LuxAlgo's own scatter construction of relative strength ratio versus momentum.

### How can I access it, and is there a crypto-focused alternative?

The indicator is free in the LuxAlgo Library. If your interest is crypto market share rather than rotation, the [Relative Crypto Dominance Polar Chart](https://www.luxalgo.com/library/indicator/relative-crypto-dominance-polar-chart/) compresses dominance for up to ten coins into one polar view. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Relative Performance Areas](https://www.luxalgo.com/library/indicator/relative-performance-areas/) (Relative Strength Comparative): markdown at https://www.luxalgo.com/library/indicator/relative-performance-areas.md
- [Relative Crypto Dominance Polar Chart](https://www.luxalgo.com/library/indicator/relative-crypto-dominance-polar-chart/) (Relative Strength Comparative): markdown at https://www.luxalgo.com/library/indicator/relative-crypto-dominance-polar-chart.md
- [Stablecoin Dominance](https://www.luxalgo.com/library/indicator/stablecoin-dominance/) (Ratio Charts): markdown at https://www.luxalgo.com/library/indicator/stablecoin-dominance.md
- [Currency Strength](https://www.luxalgo.com/library/indicator/currency-strength/) (Currency Strength Meter): markdown at https://www.luxalgo.com/library/indicator/currency-strength.md
- [Volume Bubbles & Liquidity Heatmap](https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap/) (Breadth, Sentiment & External Data): markdown at https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap.md
- [Crypto Liquidation Heatmap](https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap/) (Breadth, Sentiment & External Data): markdown at https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap.md
- [Liquidation Levels](https://www.luxalgo.com/library/indicator/liquidation-levels/) (Breadth, Sentiment & External Data): markdown at https://www.luxalgo.com/library/indicator/liquidation-levels.md
- [Market Breadth Toolkit](https://www.luxalgo.com/library/indicator/market-breadth-toolkit/) (Breadth, Sentiment & External Data): markdown at https://www.luxalgo.com/library/indicator/market-breadth-toolkit.md

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Source: https://www.luxalgo.com/library/indicator/relative-strength-scatter-plot/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/