In the latest release of my RS Line indicator for TradingView, I’ve added support for a visual callout when the RS Line has reached a new high before the stock price is at a new high.

Historical research of past big winners has shown that an RS Line at a new high before the price reaches a new high, may proceed a significant move up. This very bullish signal is now much easier to identify.

Examples of New High Callouts

There are two visual callouts that have been added to the RS Line indicator. First is the RS Line hitting a new high before the price hits a new high. Here’s how the indicator looks when RS Line is at a new high before the price, the example is from EBay in 2003.

The second type of new high callout is when the price hits a new high. Notice below both the RS Line and the stock price have reached new highs:

If you had purchased Ebay when the RS Line and price were at new highs and sold on a close below the 50-day SMA, your gain would have been approximately 66%.

RS Line New High – MSFT Gain of 206%

Microsoft in 1986 is a good example of a huge move that was proceeded by the RS Line reaching new high ahead of the price.

Here is the start of the move on October 10th, 1986:

A few days later, the price is also at a new high:

If MSFT was held until there was a decisive close below the 50-day simple moving average (SMA), the gain would have been 206%.

RS Line New High – OKTA Gain of 50%

A more recent example of the RS Line reaching a high before the price is OKTA. As the market was hitting new lows, OKTA’s RS Line was hitting new highs:

If the stock was purchased when the price reached a new high, over 5 months there was a 50% move up, before closing below the 50-day SMA: