Advanced RS Ranking & Peer Comparison

Advanced RS Rating & Sector Comparison

Original Concept & Logic by Dr. Chintan Joshi

Overview

This indicator is designed to help traders identify Market Leaders by quantifying Relative Strength (RS) on a standardized 1-99 scale. Unlike standard RSI (which looks at internal momentum), this RS Rating measures a stock's performance relative to a Benchmark (default: NIFTY 50) over a specific lookback period.

The tool goes a step further by comparing the stock's RS Rating against its Market Cap Index (e.g., Smallcap) and its Sector Index (e.g., CNX Metal, CNX IT) to determine if the stock is a "Leader" or a "Laggard" within its own category.

Key Features

RS Rating (0-99 Scale):

Calculates the ratio of the Stock Price vs. Benchmark (Nifty).

Normalizes this ratio over a lookback period (Default: 90 bars) to produce a score between 1 and 99.

A score of 90+ indicates the stock is in the top tier of relative performance against the benchmark.

Sector & Cap Comparison:

Auto-Sector Detection: The script automatically attempts to detect the sector of the current symbol (e.g., "Tata Motors" -> "CNXAUTO") and compares the stock's RS against the Sector Index's RS.

Market Cap Context: Compares the stock against a broader Market Cap index (Default: CNXSMALLCAP) to see if it is outperforming its capitalization peers.

Leader vs. Laggard Status:

The dashboard calculates the "Lead/Lag" spread.

Green (Leader): The stock's RS Rating is higher than the comparison index.

Red (Laggard): The stock's RS Rating is lower than the comparison index.

How to Use

Add to Chart: The indicator displays a compact table (movable and resizable).

Settings:

RS Lookback Length: Default is 90 (approx 1 quarter for daily charts). Adjust based on your trading style (e.g., 21 for short term, 250 for long term).

Benchmark: Set your base market index (Default: NSE:NIFTY).

Market Cap Index: Set the index relevant to your stock (e.g., NSE:CNXSMALLCAP or NSE:CNX500).

Sector Logic: Keep "Auto-Detect" on for NSE stocks. If the sector is not detected, you can manually define a sector ticker (e.g., NSE:CNXREALTY).

Visuals:

You can change the table size (Tiny to Huge) and position (e.g., Bottom Right) in the settings to fit your screen layout.

Interpreting the Dashboard

RS Rating: The raw strength score of the current symbol.

Lead/Lag: The points difference between the Stock's score and the Index's score.

Example: If Stock RS is 95 and Sector RS is 80, the Lead is +15.0.

Status: Text indication of "Leader" or "Laggard".

Credits:
This script and the underlying Relative Strength ranking logic are based on the concepts developed by Dr. Chintan Joshi.