Nifty 50 Relative Strength Indicator

🔍 Overview

The Nifty 50 Relative Strength Indicator helps traders identify NSE stocks that are outperforming the Nifty 50 Index while ensuring that they are not overextended beyond key levels. It is designed for trend-following, breakout traders, and Minervini SEPA strategy users who want to trade strong stocks at the right time without chasing overextended moves. 🚀

This indicator is displayed in a separate pane (below RSI) and provides clear labels & alerts for identifying strong stocks within a safe trading range.

📊 Features & Benefits

1️⃣ Relative Strength vs. Nifty 50
🔹 Compares the stock’s performance against Nifty 50
🔹 Identifies when a stock is outperforming the market

2️⃣ RS Line & 50-SMA
📈 Blue Line (RS Line) → Tracks stock’s strength vs. Nifty 50
📉 Red Line (RS 50-SMA) → Helps smooth out RS trend

3️⃣ RS New Highs = Strong Momentum
🔹 Highlights when RS Line is making new highs (bullish confirmation)

4️⃣ Avoid Overextended Stocks 🚨
❌ Stocks that are more than 25% above their 50-SMA are ignored
✅ Ensures safe entry points for strong stocks

5️⃣ Labels for Easy Decision Making
🟢 "✅ Within Range" Label → Stock is in a safe buy zone
🔴 "❌ Not Within Range" Label → Stock is too extended, avoid chasing

6️⃣ Background Highlighting
🔹 Blue Background = Stock is outperforming Nifty 50 & in the right price range
🔹 No color? The stock is either weak or too extended

7️⃣ Alerts for Trading Automation
📢 Get notified when:
✅ A stock outperforms Nifty 50 & is within range
⚠️ A stock is overextended (more than 25% above 50-SMA)

📢 How to Use

1️⃣ Apply this indicator on any NSE stock
2️⃣ Check the label in the separate pane:

✅ Green: Within Range (Safe Trade Setup)
❌ Red: Not Within Range (Avoid Entry)
3️⃣ Use the RS Line to confirm strong stocks making new highs
4️⃣ Enable Alerts for breakout opportunities
⚡ Ideal For

✅ Breakout Traders (Minervini SEPA, CANSLIM, Trend Following)
✅ Swing & Position Traders Looking for Strong Stocks
✅ Trend Followers Avoiding Weak & Extended Stocks
✅ Nifty 50 & NSE Stock Traders

🔗 Add This to Your TradingView Now!

This AI-powered Relative Strength indicator simplifies stock selection & keeps your trades within the right risk-reward zones.

💬 Let us know your feedback & improvements! Happy Trading! 🔥

🚀 #TradingView #RelativeStrength #Minervini #BreakoutTrading #Nifty50 #TrendFollowing #StockMarket #AITrading