RS-TVR

Creator: Definedge

Period: 50

TVR stands for Relative Strength Trend Volatility Ratio. The RS-TVR indicator plots a single line below the chart.

The study is part of the Market Relative Strength analysis.

In conjunction with Relative Strength – Alpha Volatility and RS – NV, RS – TVR attempts to analyze outperforming and underperforming stocks according to price trend and volatility.

In order to calculate the alpha for a relative strength indicator, the returns of the numerator are subtracted from the returns of the denominator.

In the case of the RS TVR indicator, the trend and volatility ratio is first calculated for the numerator and denominator. For both the numerator and denominator, the ATR and performance of the instrument are calculated in percentage terms. To determine the net trend, the numerator and denominator trends would be adjusted against their volatility. Therefore, it is necessary to plot the RS TVR indicator using a denominator. The default symbol is Nifty 50.

A trend volatility ratio is then calculated for the relative strength – TVR indicator.

An increase in the RS-TVR line and a stay above zero indicates a bullish trend, while a fall in the RS-TVR line and a stay below zero indicates a bearish trend.