RSMK - Relative Strength (Markos Katsanos)

Overview

The RSMK indicator addresses a fundamental limitation of traditional relative strength analysis - the lack of quantifiable values for systematic trading. While conventional RS indicators only provide visual comparisons that are difficult to incorporate into trading systems, Katsanos' RSMK calculates the natural logarithm of the ratio between a security's close and a benchmark index. This mathematical transformation produces meaningful numeric values that can trigger specific buy and sell signals, making relative strength analysis practical for automated trading strategies and objective decision-making.

What sets RSMK apart is its ability to identify stocks that consistently outperform the market while providing clear entry points during temporary corrections. The indicator excels at finding strong stocks experiencing brief pullbacks - ideal "buy the dips" opportunities within established uptrends. By quantifying relative performance, RSMK enables traders to build comprehensive systems that combine market strength analysis with trend-following strategies. Advanced implementations like "The Ringer" even compare a stock against multiple indices simultaneously, automatically selecting the best-performing benchmark for more accurate strength assessment.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.