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Creator: Definedge
Period: 50
RS – NV is a Relative Strength Net Volatility indicator. In the RS-NV indicator, one line is plotted below the chart.
The study is part of the Market Relative Strength analysis.
To calculate the alpha for a relative strength indicator, the returns of the numerator are subtracted from the returns of the denominator.
As for the RS NV indicator, the trend and volatility are first calculated for the numerator and denominator. Numerator and denominator trends would be adjusted against their volatility to determine the net trend. Consequently, the RS-NV indicator must be plotted using a denominator. The default symbol is Nifty 50.
The net trade is then calculated for the relative strength indicator – NV.
An increase in the RS-NV line and a stay above zero indicates a bullish trend, while a fall in the RS-NV line and a stay below zero indicates a bearish trend.