MARS - Moving Average Relative Strength

15 Mac 2023

The original idea from this script is from the script "Percentage Relative Strength" by dman103. The original script compared a symbol to an index by their everyday percentage change. The symbol percentage was subtracted from percentage change of the index, & the results were then smoothed by moving averages.

Instead of daily percentage changes, this script directly calculates relative strength via a moving average. We call this simpler approach as MARS (Moving Average Relative Strength).

MARS compares a symbol to the index by making use of the price's distance from a moving average. By default, we compare the distance from the 50-day simple moving average of the stock vs that of the index. Both the type & the length of the moving average is customisable.

Background color indicates the index being above or below its moving average.

• Blue background: index is above its moving average
  
• Pink background: index is below its moving average
  

The histogram indicates whether the stock is under-performing or out-performing the index.

• Up-bars: stock is out-performing the index i.e. between the stock & the index, the difference between the distance to/from the 50-day moving average is a positive value.
  
• Down-bars: stock is under-performing the index i.e. between the stock & the index, the difference between the distance to/from the 50-day moving average is a negative value.
  

The color of the histogram indicates the type of out-performance or under-performance. There can be a total of 6 such colors:

• Relative out-performance: both index & stock are bearish, but stock is less bearish. The script prints light green up-bars on a pink background.
  
• Gross out-performance: both index & stock are bullish, but stock is more bullish. The script prints green up-bars on a blue background.
  
• Absolute out-performance: index is bearish, but stock is bullish! The script prints blue up-bars on a pink background.
  

• Relative under-performance: both index & stock are bullish, but stock is less bullish. The script prints light red bars on a blue background.
  
• Gross under-performance: both index & stock are bearish, but stock is more bearish. The script prints dark red bars on a pink background.
  
• Absolute under-performance: index is bullish, but stock is bearish! The script prints black down-bars on a blue background.
  

Additional customisation options:

• Paint bars option changes the bar colors to mirror the histogram colors.
  
• Easy colors option just changes the histogram colors to either blue or pink, indicating out-performance or under-performance, respectively. This is when the trader does not wish to demarcate between the above-mentioned 6 conditions.
  

17 Mac 2023

Nota Keluaran

Minor bug fixes in the code.

1 Ogo 2023

Nota Keluaran

Added an option to change the colour of the Zero line.

10 Dis 2023

Nota Keluaran

⦿ Default plot display is now a line style, instead of the previous histogram style. This is still user-customisable.

⦿ Moving average for smoothing of MARS is now incorporated. By default, it uses a 9 EMA of MARS. If the MARS stays above its moving average, it indicates that MARS is going up, & is a bullish sign.

⦿ Text description of the current relative strength state is visible as a table. It is a verbose table by default (with details of the current MARS state). You can turn off the detailed text or even turn off the entire table altogether.

⦿ Easy color mode is modified & turned on by default. Easy colors are now really 'easy', as the strong & weak colors are now represented by green & red, respectively.

20 Okt 2024

Nota Keluaran

Updated to include more options in the 'Index to compare to' dropdown. Default now is NIFTYMIDSML400.