Hi traders , this is lonelygrass again π, and I am going to show what you don't often see out there and share it with you.
This indicator is called "s&p 500 sector strength index"π , which allows you to distinguish strengths and weaknesses between different sectors in s&p500, and to create meaningful trading frameworks around it.
Similar to the RSI indicator , it also has overbought and oversold levels , you can clearly figure out the degree of crowd behaviors in various sectors' stocks .
For me π€£, I will use it to "BUY LOWβ¬οΈ , SELL HIGHβ¬οΈ". When a sector is oversold at the moment, I will try to buy those stocks when I find price actions and chart patterns in comply with the analysis by this indicator , the opposite for shortselling.
Also, for sake of being more user-friendly π, I added a function which enables you to only select the sector(s) you want to look at in order to make it less messy.
If you can't help to know what I will share with you coming up, then FOLLOW my account π . Also , your likes and shares are really important π. I will get more motivated to bring you new thing every day!!! β
Thanks for creating this script but I think there is an error in line 19 (in version 4) where tech is looking at XLE/SPY (energy) instead of XLK/SPY. Causing the Tech plot to be the same as the Energy plot.
samitrading
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Hey buddy, thank you for sharing. Can i you explain how does this indicator measure strength & weakness in scoters ? Are you basing it only by using RSI ><30-70 ?
malinoisman
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this is very good, tech and energy seem to be the same or corrupted some how. Not sure if anything else is was just trying to look at tech and noticed this ? Any thoughts ?
nmahmood01
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Hi, There is correction needs to be made on Technology symbol in the line "tech = security("XLE/SPY", timeframe.period, rsi(close, period))" above, Thanks
Jb_2
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This is awesome, thank you!
merlock
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Wow! thanks for this. may you have all green trading days!