The Mansfield Relative Strength (Mansfield RS) is one of the core components of the Stan Weinstein's Stage Analysis method as discussed in his classic book Stan Weinstein's Secrets for Profiting in Bull and Bear Markets.
The Mansfield RS measures the relative performance of the stock compared to an index such as the S&P 500, or to another stock etc.
However, this should not to be confused with the popular RSI (Relative Strength Index developed J. Welles Wilder), which is a momentum oscillator that measures the speed and change of price movements on a single stock.
The Mansfield RS indicator consists of the Relative Strength comparison line versus the S&P 500 (default universal setting, but can be edited), and the "Zero Line" – which is the 52 week MA of the Relative Strength line, that's been flattened to create the oscillator style.
How to use the Indicator:
Outperforming – Above the Zero Line When the Relative Strength line crosses above the Zero Line (it's flattened 52 week RS MA), it is outperforming the index or stock that it's comparing against, and so it is showing stronger relative strength.
Underperforming – Below the Zero Line When the Relative Strength line crosses below the Zero Line (it's flattened 52 week RS MA), it is underperforming the index or stock that it's comparing against, and so it is showing weaker relative strength.
Settings:
When you first add the indicator is has a coloured background, with a green tint for a postive RS score, and a red tint for a negative RS score. However, this can be turned off, or edited in the indicator settings, in the Style tab. So you can change the colors or remove it and just have the RS line and zero line showing. Both of which can also be edited in the settings.
Change the symbol that it compares against. The default is the S&P 500. But for crypto you might want to use Bitcoin for example. Or you might want to compare against competing stocks in the same peer group, or against the industry group or sector. The choice is yours. But the S&P 500 is a universal measure for the Mansfield RS. So I would recommend leaving it on that unless you have a particular reason to change it as mentioned.
MA Length is also an editable setting. This creates the Zero Line. So it will affect the values of the Mansfield RS if you change it. 52 is the default setting, and is set as such for the weekly chart. So I'd recommend not editing it on the weekly chart, but for other timeframes, different settings can be used.
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Updated visual
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Updated visual to show two different usage options. Background colours off / on
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Updated the title that appears on the chart
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Added an option to switch to the unflattened version of the indicator, which shows the Zero Line instead as the moving average that it's calculated from. i.e. the 52 week RS MA on the weekly chart.
Displaying the zero line unflattened as the moving average that it's created from, gives an additional piece of information based on the slope of the MA. i.e. is the slope of the moving average:
Rising,
Flattening
Declining
As Stage 2 breakouts that occur below a still declining 52 week RS MA, have a higher probability of failure. So, look for Stage 2 breakouts that have a rising 52 week RS MA.
How to use the Unflattened Version:
Go to the indicator settings and untick the "Original Style" checkbox.
Then go to the Style tab and untick the Zero Line
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Added:
Additional Neutral Color parameter to the Background Colors,
If the RS line is below the MA, but the Relative Strength Moving Average is still rising. Then the Neutral Color option is shown
If the RS line is above the MA, but the Relative Strength Moving Average is still falling. Then the Neutral Color option is shown
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Added: Option to edit neutral colour based on whether the Zero Line (Relative Strength Moving Average) is still rising or still falling when the RS line moves above or below the MA.
just a note that you can put the indicator over the price and then select the ellipses (...) by the indicator in the top left and select "Pin to Scale" and select "no scale (full screen)". I don't believe you need to make a 3rd indicator to do this.
Love the features, and works great on the Weekly, but noticed the RS line is somewhat off on the Daily... Seems like maybe it's "smoothed"? Doesn't show the same RS line as if I do the same ratio on the chart, or if compared to the RS indicator on Stockcharts. Thank You
Stage_Analysis
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@Dao_De_Trading, I just checked TSLA on stockcharts daily its the same. But note the Mansfield RS is multipled by 100, so if tradingview indicator says 4.83 560, then stockcharts will show 0.048 0.056 etc, and also note that stockcharts charts are all adjusted for dividends by default. So you need to have ADJ setting turned on to match in tradingview
Fcarletti
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Beautiful work. What is the color background description? blue and black.
Stage_Analysis
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@Fcarletti, they highlight when the price has moved above or below the Zero Line (Relative Strength Moving Average), but that the Zero Line is still rising or still falling, depending on the direction of the move. Do an internet search for "How to Setup the Mansfield Relative Strength (RS) Indicator" to see a video on how to set it up.
blakrck
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monthly ma setting ?
Jamxliu
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Hi, if you were to use this indicator on a daily chart, would you set the MA length to be ~250? Would you also use it on the hourly chart? Thanks.
Stage_Analysis
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@Jamxliu, to get a rough estimation of the weekly setting o the daily I use 252 days, as that's roughly the trading days in a year. So similar to the 52 week setting. But you can also use it a different way, by just having the 52 setting on each timeframe and then using a multi timeframe approach. So 52 weeks is your main setting but then you use the lower timeframes to see faster RS changes, and combine the results to fine tune entries.
ASG971
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Hello,
I would like to start off by saying I am enrolled in your Udemy course and watch your YouTube videos every week.
I have a quick question. I would like to incorporate the Mansfield indicator into my forex strategy. I already use a combination of the stage analysis and Wyckoff method in my strategy.
My initial thought would be to replace the SPX with USD. However I was wondering if you have any other suggestions.