RS - Capsule

📘 RS Indicator User Guide: Identifying Market Leaders vs. VNINDEX
This guide explains how to interpret the Relative Strength (RS) Spread to identify the strongest stocks in the market compared to the benchmark (VNINDEX).

1. Interpreting RS Values
The RS value represents the performance spread between the stock and the VNINDEX.

🟢 RS > 0 (Outperformer): The stock is stronger than the general market. It is showing positive relative strength.

Status: Watchlist / Hold.

🔴 RS < 0 (Underperformer): The stock is weaker than the general market. It is lagging behind the index.

Action: Do Not Buy / Avoid.

🚀 RS > 5 (Market Leader): The stock belongs to the LEADER group. These are the elite stocks that are driving the market trend and significantly outperforming the index.

Status: Top Priority.

2. Buying Strategy (The "Lead-Out" Signal)
The best time to enter is when the stock demonstrates a "Lead-Out" characteristic—showing internal strength before the price fully explodes.

💎 Look for the Blue Diamond: Watch for the Blue Diamond symbol appearing below the RS line or price bar. This indicates an RS Breakout (RS makes a new high before the price does).

✅ The Buy Setup:

Wait for the appearance of multiple Blue Diamond signals (indicating sustained internal strength).

Ensure the RS Value is Positive (> 0).

Action: This is a high-probability Buy Signal.