A relative performance indicator comparing a stock's performance against an index by calculating price changes, volume, and beta factors to assess intraday trading dynamics.
Explore complementary indicator rolesHow it works
The indicator calculates relative performance by comparing a stock's price changes to an index using open-to-close price movements and normalizing them by Average True Range (ATR). It incorporates volume and beta factors to provide a comprehensive performance metric.
The calculation involves subtracting the normalized price changes of the stock and index, then multiplying by a beta factor and optional volume factor. Volume weighing compares current trading volume to its Simple Moving Average (SMA), allowing traders to understand relative trading intensity and momentum.
Why it may be useful
This signal helps traders understand a stock's performance relative to its benchmark index by providing a nuanced view of price movement, trading volume, and market dynamics. By normalizing price changes and incorporating volume and beta factors, it offers insights beyond simple price comparisons.
The indicator allows customization through adjustable parameters like moving average type, rolling average length, and volume weighing, making it a flexible tool for analyzing intraday stock performance and identifying potential trading opportunities.
When to explore it
The relative performance indicator is most effective during intraday trading sessions, particularly for active traders seeking to compare a stock's performance against a market index. It works best with liquid stocks and during periods of significant market movement where volume and price changes are meaningful.
Traders should use this signal when they want to assess a stock's relative strength, understand its performance context, and identify potential trading opportunities based on comparative price action and volume dynamics.
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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.
