OPEN-SOURCE SCRIPT
Hidden Relative Strength [ST]

**Hidden Relative Strength [ST]** is a professional Relative Strength indicator inspired by institutional trading logic (SMB Capital concepts).
It is designed to uncover "Hidden Accumulation" by comparing a stock's performance against a benchmark (SPY/QQQ), but with a crucial mathematical twist: **ATR Normalization**.
### 🧩 The Problem with Standard RS
Most Relative Strength indicators simply divide Stock Price by Index Price (`Stock / SPY`).
* **The Flaw:** High-beta stocks (like TSLA or NVDA) are naturally more volatile. In a standard ratio chart, this volatility is often mistaken for strength, generating false signals just because the stock moves faster than the index.
### 💡 The Solution: ATR Normalization
This indicator levels the playing field by normalizing price movement based on volatility.
* It calculates how many "ATRs" the stock moved versus how many "ATRs" the benchmark moved.
* **Formula:** `(Stock Change / Stock ATR) - (Benchmark Change / Benchmark ATR)`
* The result is accumulated into a single Dark Blue trend line.
### 📚 How to Use (The "Down Day" Scanner)
This tool shines when the broad market is weak.
1. **Market Sell-Off:** Look for days when the SPY/QQQ is dropping (Red Day).
2. **Divergence:** If the **Hidden RS [ST]** line is rising or holding flat while the market drops, it reveals a hidden institutional bid.
3. **Action:** Add these stocks to your priority watchlist. They are often the first to explode higher once market pressure lifts.
### ⚙️ Standardization [ST]
* **Fast Reaction:** Uses a default 5-period ATR (Simple Moving Average) to capture shifts quickly, matching the SMB "Fast" logic.
* **Visuals:** Features a clean Dark Blue line with an optimized Y-axis scale (10x multiplier) for easy reading of daily changes.
* **Benchmark:** Defaults to **QQQ** (Nasdaq), but can be changed to SPY or IWM in settings.
---
*Disclaimer: This tool is for educational purposes and technical analysis assistance only. Always manage your risk.*
It is designed to uncover "Hidden Accumulation" by comparing a stock's performance against a benchmark (SPY/QQQ), but with a crucial mathematical twist: **ATR Normalization**.
### 🧩 The Problem with Standard RS
Most Relative Strength indicators simply divide Stock Price by Index Price (`Stock / SPY`).
* **The Flaw:** High-beta stocks (like TSLA or NVDA) are naturally more volatile. In a standard ratio chart, this volatility is often mistaken for strength, generating false signals just because the stock moves faster than the index.
### 💡 The Solution: ATR Normalization
This indicator levels the playing field by normalizing price movement based on volatility.
* It calculates how many "ATRs" the stock moved versus how many "ATRs" the benchmark moved.
* **Formula:** `(Stock Change / Stock ATR) - (Benchmark Change / Benchmark ATR)`
* The result is accumulated into a single Dark Blue trend line.
### 📚 How to Use (The "Down Day" Scanner)
This tool shines when the broad market is weak.
1. **Market Sell-Off:** Look for days when the SPY/QQQ is dropping (Red Day).
2. **Divergence:** If the **Hidden RS [ST]** line is rising or holding flat while the market drops, it reveals a hidden institutional bid.
3. **Action:** Add these stocks to your priority watchlist. They are often the first to explode higher once market pressure lifts.
### ⚙️ Standardization [ST]
* **Fast Reaction:** Uses a default 5-period ATR (Simple Moving Average) to capture shifts quickly, matching the SMB "Fast" logic.
* **Visuals:** Features a clean Dark Blue line with an optimized Y-axis scale (10x multiplier) for easy reading of daily changes.
* **Benchmark:** Defaults to **QQQ** (Nasdaq), but can be changed to SPY or IWM in settings.
---
*Disclaimer: This tool is for educational purposes and technical analysis assistance only. Always manage your risk.*
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.