# Relative Strength Scatter Plot [LuxAlgo]

Updated
The Relative Strength Scatter Plot indicator is a tool that shows the historical performance of various user-selected securities against a selected benchmark.

This tool is inspired by Relative Rotation Graphs®. Relative Rotation Graphs® is a registered trademark of JOOS Holdings B.V. This script is neither endorsed, nor sponsored, nor affiliated with them.

🔶 USAGE

This tool depicts a simple scatter plot using the relative strength ratio as the X-axis and its momentum as the Y-axis of the user-selected symbols against the selected benchmark.

The graph is divided into four quadrants, and the interpretation of the graph is done depending on where a point is situated on the graph:

• A point in the green quadrant would indicate that the security is leading the benchmark in strength, with positive strength momentum.
• A point in the yellow quadrant would indicate that the security is leading the benchmark in strength, with negative strength momentum.
• A point in the blue quadrant would indicate that the security is lagging behind the benchmark in strength, with positive strength momentum.
• A point in the red quadrant would indicate that the security is lagging behind the benchmark in strength, with negative strength momentum.

The trail of each symbol allows the user to see the evolution of the relative strength momentum relative to the relative strength ratio. The length of the trail can be controlled by the "Trail Length" setting.

🔶 DETAILS

Our relative strength ratio estimate is first obtained from the relative strength between the symbol of interest and the benchmark, the result is then smoothed using a linearly weighted moving average (wma). This result is then normalized with a wma of the smoothed relative strength, this ratio is again smoothed with the wma and multiplied by 100.

The relative strength momentum estimate is obtained from the ratio between the previously estimated RS-Ratio and its wma, this ratio is then multiplied by 100.

🔶 SETTINGS

• Calculation Window: Calculation window of the RS-Ratio and RS-Momentum metrics.
• Symbols: Symbols used for the computation of the graph, each settings line allows us to determine whether the symbol is to be displayed on the graph as well as its color.
• Benchmark: Benchmark symbol used for the computation of the graph. Indices are commonly used as a benchmark.

🔹Graph Settings

• Trail Length: Number of past data points to display on the graph for each symbol.
• Resolution: Controls the horizontal length of the graph.
Release Notes:
- Script now supports greater resolutions setting
Release Notes:
- Minor changes