A+ Trade CheckList with Comprehensive Relative Strength

11 มิ.ย.

The indicator designed for traders who need real-time market assessment across multiple timeframes and benchmarks. This comprehensive tool combines traditional technical analysis with sophisticated relative strength measurements to provide a complete market picture in one convenient table display.

The indicator tracks essential trading levels including:

• QQQ and SPY trend analysis using exponential moving averages
  
• Previous day and week high/low levels for key support and resistance
  
• Market open levels from the first 5 and 15 minutes of trading (9:30 AM ET)
  
• VWAP positioning for institutional price reference
  
• Short-term EMA positioning for momentum assessment
  

Advanced Relative Strength Analysis
The standout feature of this indicator is its comprehensive 8-metric relative strength scoring system that compares your current ticker against both QQQ (Nasdaq-100) and SPY (S&P 500) benchmarks.

The 4-Metric Relative Strength System Explained
Metric 1: Relative Strength Ratio (RSR)
Purpose: Measures whether your ticker is outperforming or underperforming relative to its historical relationship with the benchmarks.

How it works:

1. Calculates the ratio of your ticker's price to QQQ/SPY prices
   
2. Compares current ratio to a 20-period moving average of the ratio
   
3. Scores +1 if ratio is above average (relative strength), -1 if below (relative weakness)
   

Trading significance: Identifies when a stock is breaking out of its normal correlation pattern with major indices.

Metric 2: Percentage-Based Relative Performance
Purpose: Compares short-term percentage changes to identify immediate relative momentum.

How it works:

1. Calculates 5-day percentage change for your ticker and benchmarks
   
2. Subtracts benchmark performance from ticker performance
   
3. Scores +1 if outperforming by >1%, -1 if underperforming by >1%, 0 for neutral
   

Trading significance: Captures recent momentum shifts and identifies stocks moving independently of market direction.

Metric 3: Beta-Adjusted Relative Strength (Alpha)
Purpose: Measures risk-adjusted performance by accounting for the ticker's natural volatility relationship with benchmarks.

How it works:

1. Calculates rolling beta (correlation and variance relationship)
   
2. Determines expected returns based on benchmark moves and beta
   
3. Measures alpha (excess returns above/below expectations)
   
4. Scores based on whether alpha is consistently positive or negative
   

Trading significance: Identifies stocks generating returns beyond what their risk profile would suggest, indicating fundamental strength or weakness.

Metric 4: Volume-Weighted Relative Strength
Purpose: Incorporates volume analysis to validate price-based relative strength signals.

How it works:

1. Compares VWAP-based percentage changes between ticker and benchmarks
   
2. Applies volume weighting factor based on relative volume strength
   
3. Enhances score when high relative volume confirms price movements
   

Trading significance: Distinguishes between genuine institutional-driven moves and low-volume price action that may not sustain.

Combined Scoring System
The indicator generates 8 individual scores (4 metrics × 2 benchmarks) that combine into a single strength assessment:

Score Interpretation

• Strong (4-8 points): Ticker significantly outperforming both benchmarks across multiple methodologies
  
• Moderate Strong (1-3 points): Ticker showing good relative strength with some mixed signals
  
• Neutral (0 points): Balanced performance relative to benchmarks
  
• Moderate Weak (-1 to -3 points): Ticker showing relative weakness with some mixed signals
  
• Weak (-4 to -8 points): Ticker significantly underperforming both benchmarks
  

Display Format
The indicator shows results as: "Strong (6/8)" indicating the ticker scored 6 out of 8 possible points.

12 มิ.ย.

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