Comparative Relative Strength
Indicator Type: Standalone
Chart Type: Interactive Charts Only
Comparative Relative Strength (CRS) is used to compare a security against an index, or against another security. The comparison is used to show the relative performance to each other. Barchart's Comparative Relative Strength also plots a moving average ratio, calculated against the moving average calculated on both securities.The study allows you to set the type of moving average to use, along with the period. In addition, the study has a parameter that changes the plot to show as a percentage above / below a zero line, where the study always starts at 0.
When the Relative Strength Comparison indicator is moving up, it shows that the security’s price is performing better than the base security/index in relative terms. When the indicator is moving sideways, it shows that both securities prices are rising and falling by the same percentages. When the indicator is moving down, it shows that the security’s price is performing worse than the base security/index in relative terms.
Sample Chart:
Calculation:
The Comparative Relative Strength indicator is calculated by dividing the base security's price by the second security or index's price. The result of this division is the ratio, or relationship, between the two securities.
The study also calculates a moving average on both securities, and then divides the base security's moving average by the second security's moving average.
Default Parameters:
- Symbol ($SPX): the index or security for comparison. The S&P 500 Index ($SPX) is used as the default.
- Average (MA): the type of moving average to use for the comparison. Choose from MA (moving average), EMA (exponential moving average), SMA (smoothed moving average), WMA (weighted moving average), HMA (hull moving average)
- Period (20): the number of bars to use in the moving average calculation.
- Display (Regular): Determines how the relative strength is computed. When "PercentChange" is chosen, the study show as a percentage above / below a zero line.
- Zero Line: Used when the Display is set to PercentChange.