A custom indicator measuring an asset's performance relative to a market benchmark by calculating normalized returns to identify outperforming or underperforming assets.
Explore complementary indicator rolesHow it works
The market relative strength indicator calculates the return difference between a specific asset and a chosen market benchmark over a user-defined period. It performs this calculation by comparing the asset's performance against indexes like KOSPI, NASDAQ100, or crypto market metrics.
After computing the relative returns, the indicator normalizes the result into a 0-100 score that provides a clear visualization of market performance. Scores above 50 indicate outperformance, while scores below 50 suggest underperformance, with extreme zones at above 70 or below 30 representing strong market divergence.
Why it may be useful
Market relative strength provides traders with a powerful comparative analysis tool that goes beyond traditional price momentum indicators. By offering a normalized view of an asset's performance against a broader market context, traders can make more informed decisions about asset selection and portfolio allocation.
The indicator helps identify trend leaders and laggards, enabling strategic positioning across different sectors and assets. Its ability to provide clear visual cues about market performance makes it an essential tool for traders seeking to understand relative market dynamics and potential investment opportunities.
When to explore it
This indicator is most effective during periods of market transition or when comparing performance across different asset classes or sectors. Traders can utilize it to identify which assets are demonstrating strong relative strength and potentially positioning themselves ahead of broader market movements.
The market relative strength indicator is particularly useful for sector rotation strategies, portfolio rebalancing, and identifying assets that are outperforming or underperforming their benchmark. It provides valuable insights during changing market conditions, helping traders make more strategic and data-driven investment decisions.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
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