I think anyone reading this post would agree that my request is actually an interesting one. kindly go through and let me get the most number of highlights only and only because dhan works on this.
a trader or an investor is going to make money out of the market only and if THEIR HOLDING OUTPERFORMS the market. This is the core rule of making money. change my mind.
Dhan has solved that issue by providing an indicator called as the THE COMPARATIVE RELATIVE STRENGTH INDICATOR in their in house trading view charting platform. But they need to understand that this is a leading indicator. it will basically show the relative return of the stock to the benchmark indicates outperformance or underperformance the benchmark (which is the index) itself.
i have sent more than 10 emails requesting, making the support team understand that this is a leading indicator and it will be a major major successful strategy if they had arrange for a scanner of stocks which are currently outperforming the market so that they can be arranged in the portfolio likewise?
A scanner provided by dhan to indicate the stock is outperforming or underperforming the benchmark by x number of days with the help of the indicator available in the trading view.
So i would DHAN to make a scanner for comparative relative strength of the stock compared to the benchmark by the X number of days so that any person in the market can understand if their holding is outperforming or underperforming the benchmark.
i still stand tall with my request. a scanner for this particular indicator can make wonders. people dont have to think about technicals and fundamentals anymore. just a portfolio stock if it beats the return of the market/index/industry. y’all need to think abou this.
There is an indicator called RSI, which is similar to what you are suggesting. Also, on TradingView, you can compare any stock/index to any other stock/index by simply adding it to the chart.
Can you shed some light on how this can be different from the already existing options. And also, if you can share reference of similar existing feature/indicator somewhere?
When people mention Comparative Relative Strength, it’s easy for those unfamiliar with the concept to confuse it with the Relative Strength Index (RSI). While the RSI compares the price of the same instrument over a specific period (typically 14 candles), the Comparative Relative Strength indicator compares the price of two different instruments over the same time frame.
This approach allows you to assess how one asset is performing relative to another — typically a benchmark index like the Nifty50 or Nifty100. By doing this, you can determine if a particular stock or asset class is outperforming the broader market.
In this case, the original post is making an interesting observation about using Comparative Relative Strength as a potential leading indicator to identify stocks or asset class that are likely to outperform in the future.
A comparative relative strength (CRS) line crossing above its 200-day Exponential Moving Average (EMA) is a strong bullish technical signal, indicating that the stock is beginning to outperform its benchmark or a comparative security over the long term, marking a potential shift in momentum and a new relative uptrend.
Understanding Comparative Relative Strength (CRS)
The Comparative Relative Strength is an indicator used in technical analysis to gauge the performance of one security against another (e.g., a stock versus its sector index or a broad market index like the S&P 500).
Calculation: The CRS line is a ratio calculated by dividing the price of the stock by the price of the benchmark security.
Interpretation:
An uptrend in the CRS line means the stock is outperforming the benchmark.
A downtrend means the stock is underperforming.
The CRS line operates like any other price chart and can be analyzed using standard technical tools like moving averages and support/resistance levels.
Significance of Crossing the 200 EMA
The 200-day EMA is widely regarded as a key indicator of a security’s long-term trend.
Bullish Crossover: When the CRS line crosses above its 200-day EMA, it signals a significant change in long-term momentum, specifically that the stock’s outperformance relative to its benchmark is strengthening and potentially entering a new, sustained phase.
Bearish Crossover: Conversely, if the CRS line crosses below its 200-day EMA, it indicates a shift to relative underperformance or a weakening of the existing relative uptrend.