OPEN-SOURCE SCRIPT
Updated Relative Strength Confluence - vs Benchmark
RS Confluence - Dual Signal vs Benchmark
RS Confluence is a relative strength indicator designed to measure whether the current symbol is outperforming or underperforming a chosen benchmark (default: BTC), using two independent signals on the price ratio between the symbol and the benchmark.
How it works
The indicator calculates a ratio between the current symbol's close and the benchmark's close (Symbol / Benchmark), then evaluates it through two lenses:
Level — RSI applied directly to the ratio. Measures whether the symbol is currently trading strong or weak relative to the benchmark.
Momentum — RSI applied to the Rate-of-Change of the ratio. Measures whether relative performance is accelerating or decelerating.
Both signals are kept on the same 0-100 scale, allowing them to be plotted together and compared directly.
Confluence Scoring
Bullish signal — Level and Momentum both cross above the bullish threshold (default 55) → RS BULLISH 2/2.
Bearish signal — Level and Momentum both cross below the bearish threshold (default 45) → RS BEARISH 2/2.
Partial agreement (1/2) and neutral readings (0/2) are also tracked and displayed in the info table.
Features
- Configurable benchmark symbol (any ticker, default BTC)
- Dual confluence scoring (Level + Momentum)
- Background coloring on full confluence
- Triangle markers on the first bar of a new confluence signal
- Live info table showing ratio, level, momentum and confluence status
- Built-in warning when the chart symbol matches the selected benchmark
- PulseWire alert conditions for bullish/bearish confluence and midline crosses
- Non-repainting (uses confirmed values on the current timeframe)
How to Read the Chart
Blue Line (Level) — RSI of the Symbol/Benchmark ratio. Shows whether the symbol is currently stronger or weaker than the benchmark.
Orange Line (Momentum) — RSI of the ratio's Rate-of-Change. Shows whether that relative strength is accelerating or fading.
Dashed Threshold Lines — The upper line is the bullish threshold, the lower line is the bearish threshold. Full confluence requires both Level and Momentum to be on the same side of their respective threshold at the same time.
Red Triangles (top, pointing down) — Mark the first bar of a new RS BEARISH 2/2 signal: both Level and Momentum dropped below the bearish threshold together.
Green Triangles (bottom, pointing up) — Mark the first bar of a new RS BULLISH 2/2 signal: both Level and Momentum rose above the bullish threshold together.
Background Shading — Highlights the full duration of an active confluence signal (not just the trigger bar), making it easy to see how long the symbol stayed in a bullish or bearish RS regime.
Suggested Interpretation
RS Confluence is intended as a context indicator, not a standalone trading signal. A coin can show a strong technical setup on its own chart, but if it is underperforming the benchmark (e.g. BTC), the setup carries less weight — and vice versa. Use this indicator to filter or confirm signals from other tools rather than trading it in isolation.
Important
Do not apply this indicator to a chart where the symbol is the same as (or economically equivalent to) the selected benchmark — the ratio becomes constant or near-constant, making the readings meaningless. The indicator detects an exact ticker match and displays a warning in the info table, but different tickers referencing the same underlying asset (e.g. the same coin on a different exchange or quote currency) are not automatically detected.
This is the third indicator in a related series, designed to work alongside Divergence Confluence 7 and Volume Surge - Dual Period as part of a broader confluence-based analysis approach.
RS Confluence is a relative strength indicator designed to measure whether the current symbol is outperforming or underperforming a chosen benchmark (default: BTC), using two independent signals on the price ratio between the symbol and the benchmark.
How it works
The indicator calculates a ratio between the current symbol's close and the benchmark's close (Symbol / Benchmark), then evaluates it through two lenses:
Level — RSI applied directly to the ratio. Measures whether the symbol is currently trading strong or weak relative to the benchmark.
Momentum — RSI applied to the Rate-of-Change of the ratio. Measures whether relative performance is accelerating or decelerating.
Both signals are kept on the same 0-100 scale, allowing them to be plotted together and compared directly.
Confluence Scoring
Bullish signal — Level and Momentum both cross above the bullish threshold (default 55) → RS BULLISH 2/2.
Bearish signal — Level and Momentum both cross below the bearish threshold (default 45) → RS BEARISH 2/2.
Partial agreement (1/2) and neutral readings (0/2) are also tracked and displayed in the info table.
Features
- Configurable benchmark symbol (any ticker, default BTC)
- Dual confluence scoring (Level + Momentum)
- Background coloring on full confluence
- Triangle markers on the first bar of a new confluence signal
- Live info table showing ratio, level, momentum and confluence status
- Built-in warning when the chart symbol matches the selected benchmark
- PulseWire alert conditions for bullish/bearish confluence and midline crosses
- Non-repainting (uses confirmed values on the current timeframe)
How to Read the Chart
Blue Line (Level) — RSI of the Symbol/Benchmark ratio. Shows whether the symbol is currently stronger or weaker than the benchmark.
Orange Line (Momentum) — RSI of the ratio's Rate-of-Change. Shows whether that relative strength is accelerating or fading.
Dashed Threshold Lines — The upper line is the bullish threshold, the lower line is the bearish threshold. Full confluence requires both Level and Momentum to be on the same side of their respective threshold at the same time.
Red Triangles (top, pointing down) — Mark the first bar of a new RS BEARISH 2/2 signal: both Level and Momentum dropped below the bearish threshold together.
Green Triangles (bottom, pointing up) — Mark the first bar of a new RS BULLISH 2/2 signal: both Level and Momentum rose above the bullish threshold together.
Background Shading — Highlights the full duration of an active confluence signal (not just the trigger bar), making it easy to see how long the symbol stayed in a bullish or bearish RS regime.
Suggested Interpretation
RS Confluence is intended as a context indicator, not a standalone trading signal. A coin can show a strong technical setup on its own chart, but if it is underperforming the benchmark (e.g. BTC), the setup carries less weight — and vice versa. Use this indicator to filter or confirm signals from other tools rather than trading it in isolation.
Important
Do not apply this indicator to a chart where the symbol is the same as (or economically equivalent to) the selected benchmark — the ratio becomes constant or near-constant, making the readings meaningless. The indicator detects an exact ticker match and displays a warning in the info table, but different tickers referencing the same underlying asset (e.g. the same coin on a different exchange or quote currency) are not automatically detected.
This is the third indicator in a related series, designed to work alongside Divergence Confluence 7 and Volume Surge - Dual Period as part of a broader confluence-based analysis approach.
Release Notes
Small change in copyrights infoOpen-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.