All indicators

Relative Strength Scatter Plot

By LuxAlgoFeb 6, 2024

Relative Strength Scatter Plot places user-selected symbols on a four-quadrant graph of comparative relative strength against momentum, both measured versus a benchmark of your choice. Inspired by 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

Free on Vela

Run it on Vela. Go further with a paid plan.

  • Up to 500 strategy alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • More Quant usage to customize it, plus extra usage when you need it
  • Futures data alongside crypto, stocks, forex and commodities
See plans

Also works on

TradingView
Original indicatorBuilt in-house by LuxAlgo

Run it on Vela. Make it yours with Quant.

Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.