The RS Line, or Relative Strength Line, tracks a stock’s price performance relative to a benchmark index, most commonly the S&P 500.
This video is a quick walkthrough on how to screen for stocks using the RS Line New High Pine Screener for TradingView:
▪ RS Line at new high.
▪ RS Line at new high before price.
▪ Relative Strength days, shown as a percentage of the time is stock outperforming the benchmark index.
Relative Strength Days
If the Relative Strength Line for a stock rises, it indicates that the stock is outperforming its benchmark index. For instance, if we use a 20-bar lookback period and observe that the RS line increased on 15 out of those 20 days, the stock has outperformed the benchmark 75% of the time. In this example, there were 15 relative strength days out of a total of 20 days.
When the RS line moves up on any given day, it means the stock’s price either rose more or declined less than the benchmark index, signaling stronger relative performance. Consistent upward movement in the RS line suggests growing demand for the stock and may point to it becoming a market leader, particularly if this trend of outperformance persists over many days.
Keep tabs on the Relative Strength Days during market corrections and look for percentages over 50%, as this can help identify stocks showing strength despite overall market underperformance.