OPEN-SOURCE SCRIPT
Updated Equilibrium Price for Relative Strength

Plot of equilibrium price of Relative Strength.
Instead of the RS ratio, this is the plot of the price that will make the RS ratio equal to zero, we call this the equilibrium price.
About the equilibrium price plot:
- When the plot is below the symbol price plot, it means stock is performing above the benchmark
- When the plot is above the symbol price plot, it means stock is underperforming in comparison to the benchmark
- When the plot is close (or equal) to the symbol price plot, it means that RS is near the zero line, either crossing over or crossing below
The latest equilibrium is displayed over the plot. This gives a visual and quantitative idea of how far above or below the equilibrium price is in comparison to the current price.
In the above example, we see that HDFC Bank which was performing above the benchmark (trading above equilibrium price) whipsawed a lot (price near equilibrium price), before swaying down during the COVID-19 fall in the market (price is trading below the equilibrium price) . Currently, the equilibrium price is 1136, but HDFC Bank is trading below this price at 1033, around 100 points below.
Instead of the RS ratio, this is the plot of the price that will make the RS ratio equal to zero, we call this the equilibrium price.
About the equilibrium price plot:
- When the plot is below the symbol price plot, it means stock is performing above the benchmark
- When the plot is above the symbol price plot, it means stock is underperforming in comparison to the benchmark
- When the plot is close (or equal) to the symbol price plot, it means that RS is near the zero line, either crossing over or crossing below
The latest equilibrium is displayed over the plot. This gives a visual and quantitative idea of how far above or below the equilibrium price is in comparison to the current price.
In the above example, we see that HDFC Bank which was performing above the benchmark (trading above equilibrium price) whipsawed a lot (price near equilibrium price), before swaying down during the COVID-19 fall in the market (price is trading below the equilibrium price) . Currently, the equilibrium price is 1136, but HDFC Bank is trading below this price at 1033, around 100 points below.
Release Notes
- Equilibrium Price, upto 2 places of decimal
- Minor typo fix
Release Notes
NBWC Changes!: Please Read- Updated to Pinescript version 6
- Now added, ARS date picker
- Removed length, and replaced with manual override of ARS date
- Improved aesthetics
The indicator is now updated to avoid a re-paint, since addition of the ARS Date picker, ensures that the lengths for calculations are adjusted each day for previous days. If one still desires the old way (which is partially incorrect) use the manual override.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.