TMO of Relative Strength

This indicator shows 3 TMOs, one for the charted symbol, one for a chosen index symbol, and one for the relative strength ratio of the 2 symbols.

While a normal TMO measures momentum of a stock, this indicator measures the subtle momentum shifts that happen in the relative strength ratio of the stock, which can sometimes happen before the momentum of the stock itself shifts. This provides the potential for an early warning that a move may be about to begin, even before the stock price starts heading in one direction.

Many traders watch relative strength ratio charts to see when a stock begins to outperform the index. This indicator doesn't measure the relative or comparative strength ratio itself, but instead measures the change in momentum of relative strength.

Signals and alerts are provided for when the Ratio's TMO line crosses above/below the Stock's TMO line, or the Market Index's TMO line, and also for when the Stock's TMO line crosses above/below the Market's TMO line even if the ratio isn't crossing currently. Also alerts when the Ratio or Stock TMO lines cross their prior values.

I created a version of this for Thinkorswim originally and it has been valuable to me and my clients, so I hope it provides value here as well.

-Josiah