Configurable Stock vs QQQ Strength Matrix

6 hari lalu

Solves Key Intraday Trading Challenges
Real-Time Relative Strength Analysis: Traditional watchlists only show price movements, but traders need to understand how individual stocks perform relative to their benchmark (QQQ) to identify true outperformers and underperformers during intraday sessions.

Multiple Timeframe Support: The script addresses the need for consistent analysis across different intraday timeframes (1, 3, 5, 15 minutes), allowing traders to adapt their analysis to various trading styles from scalping to swing trading.

Comprehensive Multi-Metric View: Instead of switching between multiple indicators, this single script provides four different relative strength perspectives in one compact display, saving screen real estate and analysis time.

Customizable Stock Selection: Unlike fixed watchlists, this tool allows traders to monitor any combination of stocks, making it adaptable for sector rotation, earnings plays, or custom stock baskets.

Target Use Cases
Intraday Momentum Trading: Quickly identify which stocks are gaining or losing momentum relative to the market during active trading sessions.

Sector Analysis: Compare stocks within specific sectors (tech, banking, energy) against QQQ to find relative strength leaders.

Risk Management: Monitor portfolio holdings to see which positions are outperforming or underperforming the broader tech-heavy market represented by QQQ.

How the Four Metrics Work
1. MFI Comparison (Money Flow Index)
Purpose: Measures buying and selling pressure by combining price movement with trading volume.

Calculation:

Compares each stock's 14-period MFI with QQQ's MFI

MFI ranges from 0-100, incorporating both price changes and volume

Higher MFI indicates stronger buying pressure

Interpretation:

▲ (Green): Stock has stronger money flow than QQQ - institutional buying interest

▼ (Red): Stock has weaker money flow than QQQ - potential selling pressure

- (Yellow): Neutral or insufficient data

2. RS Ratio (Relative Strength Ratio)
Purpose: Direct price performance comparison between stock and benchmark.

Calculation:

Simple ratio: Stock Price ÷ QQQ Price

Values above 1.0 indicate outperformance

Values below 1.0 indicate underperformance

Interpretation:

▲ (Green): Stock price relatively stronger than QQQ

▼ (Red): Stock price relatively weaker than QQQ

- (Yellow): Equal performance or data issues

3. RSI Comparison (Relative Strength Index)
Purpose: Compares momentum oscillators to identify relative overbought/oversold conditions.

Calculation:

Compares 14-period RSI of stock vs QQQ's RSI

RSI measures rate of price change momentum

Difference indicates relative momentum strength

Interpretation:

▲ (Green): Stock has higher momentum than QQQ - potential continued strength

▼ (Red): Stock has lower momentum than QQQ - potential weakness

- (Yellow): Similar momentum levels

4. VWRS (Volume-Weighted Relative Strength)
Purpose: Incorporates trading volume to weight the relative strength calculation.

Calculation:

Formula: (Stock Price × Stock Volume) ÷ (QQQ Price × QQQ Volume)

Accounts for liquidity and institutional participation

Higher values indicate volume-supported strength

Interpretation:

▲ (Green): Volume-weighted strength exceeds QQQ - strong institutional interest

▼ (Red): Volume-weighted weakness vs QQQ - potential distribution

- (Yellow): Balanced volume-weighted performance

6 hari lalu

Nota Keluaran

Simplified RS Calculation
Single Period Focus: Uses only 1-bar lookback for immediate responsiveness

Rate of Change Based: Compares percentage changes rather than complex weighted combinations