Mansfield Relative Strength Indicator: Find Stocks That Actually Beat the Market (2025 Guide)

You know that feeling when you think you've picked a winner, only to watch it barely keep up with the market? I've been there too many times. That's exactly why the Mansfield Relative Strength indicator became my go-to tool for separating the real performers from the pretenders.

Here's the thing - most traders focus on whether a stock is going up or down. But what really matters is whether it's going up faster than everything else. The Mansfield Relative Strength (MRS) indicator does exactly that by comparing your stock directly to the S&P 500, showing you clear signals when something's truly outperforming.

When the MRS line sits above zero, your stock is beating the market. Below zero? It's lagging behind. Simple as that. This isn't just another oscillator cluttering your chart - it's a reality check that keeps you focused on the stocks that actually matter.

What Makes the Mansfield Relative Strength Indicator Different?

The Mansfield Relative Strength indicator isn't your typical momentum tool. While most indicators just tell you if a stock is overbought or oversold, MRS tells you something way more valuable - whether your stock is actually worth holding compared to just buying an index fund.

Think about it this way: if Apple is up 2% but the S&P 500 is up 3%, Apple is actually underperforming despite the green candles. The MRS indicator would show this as a negative reading, warning you that Apple isn't pulling its weight.

The calculation is straightforward but powerful. It takes your stock's price, divides it by the S&P 500 price, then smooths this ratio with a moving average. The final step normalizes everything around zero, making it dead simple to read. Above zero = outperforming, below zero = underperforming.

Stan Weinstein developed this approach and wrote about it in "Secrets for Profiting in Bull and Bear Markets." His core insight was brilliant: why fight the market when you can ride the strongest horses? The MRS indicator automatically identifies these horses for you.

What's really clever is how the indicator adapts to different timeframes. Daily charts use a 200-period moving average (matching the famous 200-day MA), weekly charts use 52 periods (one year), and monthly charts use 10 periods. This isn't random - these periods align with how institutional investors actually think about market cycles.

Why Pineify Makes This So Much Easier

Look, I'll be honest - coding Pine Script from scratch is a pain. I've spent countless hours debugging syntax errors and trying to figure out why my indicators weren't working. That's where Pineify comes in, and it's been a game-changer for my trading setup.

Pineify takes all the technical headaches out of creating custom indicators. Instead of wrestling with code, you get access to professionally built indicators that actually work in real market conditions. The Mansfield Relative Strength indicator is just one example - they've got a whole library of tools that I use daily.

What I really appreciate is that every indicator comes with clear documentation and proven settings. No more guessing whether you've configured something correctly or wondering if the signals are reliable. These aren't just random indicators thrown together - they're battle-tested tools that thousands of traders rely on.

The platform also keeps everything updated automatically. When TradingView releases new features or changes something, you don't have to worry about your indicators breaking. That peace of mind alone is worth it when you're managing real money.

Getting the Mansfield Relative Strength Indicator on Your Charts

Setting up the Mansfield Relative Strength indicator is actually pretty straightforward once you know where to look. The easiest way is through Pineify's platform, which gives you the clean, working code without any of the usual Pine Script headaches.

Here's how I do it: Head over to Pineify and find the Mansfield Relative Strength indicator in their library. The code is right there, ready to copy. No hunting through forums or trying to piece together broken scripts from random sources.

Once you've copied the code, jump into TradingView and open the Pine Editor (it's at the bottom of your screen). Paste the code in there and hit "Add to Chart." That's it - you'll see the indicator appear in its own pane below your price chart.

The visual setup is clean and intuitive. You get a line that moves above and below zero, with background colors that change based on performance. Green background means your stock is outperforming the market, red means it's lagging. Simple visual cues that you can read at a glance.

Want to tweak the appearance? Right-click on the indicator and hit "Settings." You can adjust colors, line thickness, and other visual elements to match your chart style. I personally like to make the line a bit thicker so it stands out more clearly.

How I Actually Use This Indicator in My Trading

The beauty of the Mansfield Relative Strength indicator is in its simplicity, but there are some nuances that took me a while to figure out. Let me walk you through how I actually use it in real trading situations.

The most obvious signal is when the MRS line crosses above zero. This tells you the stock is starting to outperform the S&P 500, which is usually a good sign. I don't jump in immediately though - I wait to see if it can hold above zero for at least a few days. False breakouts happen, and patience saves money.

When the line drops below zero, that's your warning that the stock is losing steam relative to the market. This doesn't mean you should panic sell, but it does mean you should start paying closer attention. If you're holding a position, this might be a good time to tighten your stop loss or consider taking some profits.

Here's something I learned the hard way: the zero line isn't just a signal generator - it's a filter. I focus most of my attention on stocks that spend the majority of their time above zero. These are the consistent outperformers, and they tend to be where the real money is made.

The slope of the line matters just as much as its position. A rising MRS line, even if it's below zero, can signal that relative strength is improving. Conversely, a falling line above zero might warn you that outperformance is weakening.

I never use the MRS indicator in isolation. It works best when combined with other tools from my swing trading arsenal. The MRS tells me which stocks to focus on, while other indicators help me time the actual entries and exits.

The Settings That Actually Matter (And the Ones That Don't)

Here's the thing about indicator settings - most people overthink them. The default Mansfield Relative Strength settings work perfectly fine for 90% of situations. But there are a few tweaks that can make a real difference.

The most important setting is your comparison symbol. The default SPY works great for most US stocks, but I've found better results using sector-specific benchmarks. If I'm trading tech stocks, I'll switch to QQQ. For small caps, IWM gives me more relevant comparisons. The key is matching your stock to the right benchmark.

The lookback period is where things get interesting. The default setting strikes a good balance, but I've experimented with shorter periods for day trading and longer ones for position trading. Shorter periods make the indicator jumpier - great for catching quick moves but terrible for your stress levels. Longer periods smooth things out but might make you miss the party.

Color settings might seem trivial, but they're not. I changed my colors to match my overall chart theme, and it actually helps with decision-making speed. When everything flows visually, you process information faster.

One setting most people ignore is the zero line thickness. I made mine thicker and changed the color to bright yellow. Since this line is so critical for decision-making, making it stand out helps with quick visual assessment.

Want to know if your settings are actually working? Backtest them properly. I spent months tweaking settings based on gut feeling before I learned to test them systematically. The data doesn't lie, and it might surprise you which settings actually perform better.

Testing This Thing Properly (Because Hope Isn't a Strategy)

I'll be honest - I used to just eyeball charts and convince myself that indicators worked. Then I started actually backtesting, and boy, was I in for some surprises. Here's how to test the Mansfield Relative Strength indicator the right way.

First, keep it simple. Start with basic rules: buy when the MRS line crosses above zero, sell when it crosses below. Don't get fancy yet - you need to understand the baseline performance before adding complexity.

TradingView's Strategy Tester is your friend here. I spent way too much time trying to backtest manually in spreadsheets before discovering this feature. Set up a simple strategy that follows your rules and let it run across different time periods.

Here's what I learned from hundreds of backtests: the MRS indicator works differently across timeframes. What works on daily charts might be terrible on hourly charts. Test everything. I keep a spreadsheet tracking performance across different timeframes and market conditions.

Don't forget about transaction costs. I made this mistake early on - a strategy that looked profitable on paper became a money loser once I factored in commissions and slippage. Always include realistic trading costs in your tests.

The real test is how the indicator performs across different market environments. Bull markets, bear markets, sideways chop - each one tells you something different about the indicator's reliability. I've found that relative strength strategies tend to struggle in highly volatile, directionless markets.

Want to take it up a notch? Test the MRS indicator alongside other tools from proven day trading setups. I rarely use any indicator in isolation, and the combinations that work might surprise you.

Pay close attention to drawdown periods. It's one thing to see a 15% maximum drawdown on a backtest; it's another thing entirely to live through it with real money. Make sure you can handle the psychological pressure before going live.

Questions I Get Asked All the Time (And My Honest Answers)

Q: Can I use the Mansfield Relative Strength indicator for crypto trading?

A: Absolutely, but you'll need to change your benchmark. Instead of comparing to SPY, use Bitcoin or a crypto index. I've had good results comparing altcoins to Bitcoin's performance. Just remember that crypto moves faster and more violently than stocks, so be prepared for more dramatic swings in the indicator.

Q: How often should I check the MRS indicator?

A: This depends on your trading style. If you're day trading, you might check it multiple times per day. For swing trading, once a day is usually enough. I personally check it every morning as part of my market prep routine. The key is consistency - don't obsess over every tiny movement.

Q: What's the biggest mistake people make with this indicator?

A: Treating it like a crystal ball. The MRS indicator tells you what's happening with relative strength, not what's going to happen. I see traders jumping into stocks just because they crossed above zero, without considering the overall market context or the stock's fundamentals. It's a tool, not a magic solution.

Q: Should I use different settings for different sectors?

A: I've experimented with this extensively. For most sectors, the default settings work fine. However, I do adjust the benchmark - tech stocks get compared to QQQ, financials to XLF, etc. The key is matching your stock to a relevant benchmark, not necessarily changing the calculation periods.

Q: Can this indicator help me avoid big losses?

A: It can definitely help, but it's not foolproof. When a stock's MRS line starts declining, especially if it drops below zero, that's often an early warning sign. I've avoided several major drawdowns by paying attention to deteriorating relative strength. But remember, sometimes the whole market goes down together, and relative strength won't save you from that.

Q: How does this compare to regular RSI?

A: They're completely different animals. RSI measures whether a stock is overbought or oversold based on its own price action. The Mansfield Relative Strength indicator compares the stock's performance to a benchmark. You can have a stock with low RSI (oversold) but high relative strength (outperforming the market). I actually use both - RSI for timing entries and exits, MRS for stock selection.

Q: Is this indicator better for bull markets or bear markets?

A: It works in both, but differently. In bull markets, I focus on stocks that consistently stay above zero - these are the real winners. In bear markets, I look for stocks that hold up better than the market (less negative relative strength). Sometimes the best trade in a bear market is the stock that's only down 5% when everything else is down 20%.

Quick Answers to Common Questions

What makes the Mansfield Relative Strength different from RSI?

Think of it this way: RSI tells you if a stock is overbought or oversold based on its own recent price action. The Mansfield Relative Strength tells you how that stock is performing compared to the overall market. A stock can have low RSI (oversold) but still be outperforming the market (positive MRS). They measure completely different things.

Can I use this for forex trading?

Absolutely, but you'll need to pick the right benchmark. Instead of comparing to SPY, you might compare EUR/USD to a dollar index or another major currency pair. The concept works the same - you're just measuring relative performance against a relevant benchmark.

How often should I actually check this thing?

Honestly? It depends on how you trade. I check mine every morning as part of my routine, but I'm not glued to it all day. If you're day trading, you might want to check it more frequently. For swing trading, once a day is plenty. Don't overthink it.

What does it mean when the line just sits around zero forever?

That's actually pretty common and tells you something important - the stock is basically moving in lockstep with the market. No relative strength, no relative weakness. These are often the boring stocks that don't offer much trading opportunity. I usually skip them and focus on stocks showing clear relative strength or weakness.

Should I use this for picking stocks or timing trades?

Both, but in different ways. I use it first to filter stocks - I want to see consistent relative strength before I even consider a position. Then I might use other indicators (like the Relative Vigor Index) for the actual entry and exit timing. Think of MRS as your stock screener, not your entry trigger.

The Bottom Line

Here's what I want you to remember about the Mansfield Relative Strength indicator: it's not going to make you rich overnight, but it will make you a smarter trader. This tool has helped me avoid countless bad trades and identify opportunities I would have missed otherwise.

The beauty of the MRS indicator is its simplicity. You don't need a PhD in mathematics to understand what it's telling you. When the line is above zero, the stock is beating the market. When it's below zero, it's not. Simple as that.

But here's the key - don't use it alone. I've learned this lesson the hard way more times than I care to admit. The MRS indicator is fantastic for stock selection and understanding relative performance, but you need other tools for timing, risk management, and confirmation.

Start simple. Add the indicator to your charts, watch how it behaves with stocks you know well, and gradually incorporate it into your trading process. Don't try to revolutionize your entire approach overnight.

Most importantly, backtest everything. I can't stress this enough. What works for me might not work for you, and what worked last year might not work this year. Test your ideas, measure your results, and adjust accordingly.

The market is constantly evolving, and so should your approach to trading it. The Mansfield Relative Strength indicator is just one tool in your toolkit, but when used properly, it's a powerful one that can give you a real edge in identifying the stocks that actually matter.