Price Relative

Install and import#

npm install fintech-algorithms

import { priceRelative } from "fintech-algorithms/technical-indicators/price-transforms/price-relative";

Signature#

priceRelative(input)

Rebases the ratio of close to a benchmark level so the first bar equals base, producing a relative-strength line.

Parameters#

Returns#

TopicResult

series holds a single value, base times the close-to-benchmark ratio divided by that ratio on the first bar, and latest its last element. Every bar produces a value, so there is no warm-up.

Warm-up#

The first none positions are `base` on the first bar, 100 by default. ready_at is 0. The rebasing anchor is the first bar of the input, so the line is only comparable across runs that start at the same bar.

Errors#

• When any bar is missing benchmark, or carries one that is zero or negative — throws Error
• When the first bar's close divided by its benchmark is 0 — throws Error
• When base is negative or not a finite number — throws Error

Complexity: time O(n), space O(n).

Worked example#

executed Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

Input#

{
  "bars": [
    {
      "timestamp": "2024-01-02",
      "basis": "synthetic-unadjusted",
      "open": 100,
      "high": 101.45,
      "low": 98.695,
      "close": 100,
      "volume": 750000,
      "benchmark": 200
    },
    {
      "timestamp": "2024-01-03",
      "basis": "synthetic-unadjusted",
      "open": 101.49111452,
      "high": 103.38381693,
      "low": 100.05480022,
      "close": 101.78791214,
      "volume": 795117,
      "benchmark": 200.56326135
    },
    {
      "timestamp": "2024-01-04",
      "basis": "synthetic-unadjusted",
      "open": 102.45519048,
      "high": 104.6701838,
      "low": 100.91147007,
      "close": 102.9549389,
      "volume": 840234,
      "benchmark": 201.11020913
    }
  ],
  "parameters": {}
}

Call#

priceRelative(input)

Returns#

object with 9 fields: topic_id, title, state, ready, ready_at, series, latest, parameters, …

{
  "topic_id": "D07-F08-A07",
  "title": "Price Relative",
  "state": "calculated",
  "ready": true,
  "ready_at": 0,
  "series": {
    "value": [
      100,
      101.50205122798776,
      102.38658628558109,
      102.40022103095427,
      101.76610843670669,
      101.0050531589489
    ]
  },
  "latest": {
    "value": 95.80918058424696
  },
  "parameters": {},
  "diagnostics": {
    "causal": true,
    "input_count": 96
  }
}

Diagrams#

Calculation flow#

flowchart LR
    A["finite, basis-consistent OHLC observations and any require"] --> B["Validate order, basis, and finite values"]
    B --> C["Apply the selected Price Relative convention"]
    C --> D["Emit value, readiness, and diagnostics"]
    D --> E["Interpret descriptively; test outcomes separately"]
    B -->|invalid or insufficient| X["Withhold output with a reason"]

stateDiagram-v2
    [*] --> Waiting
    Waiting --> Ready: enough valid causal observations
    Waiting --> Rejected: malformed or unsupported input
    Ready --> Calculated: selected formula applied
    Calculated --> Interpreted: diagnostic and limitation retained
    Interpreted --> Ready: next observation arrives
    Rejected --> Waiting: corrected input and deterministic reset

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

• TA-Lib function groups — see linked primary or authoritative record
• TA-Lib C/C++ API — see linked primary or authoritative record
• TA-Lib maintained source — see linked primary or authoritative record
• Evidence decision
• Level 1 evidence map

The rest of the Price Transforms family#

• Typical PriceAverages each bar's high, low and close into a single representative price.
• Median Price TransformTakes the midpoint of each bar's high and low.
• Weighted CloseAverages high, low and a double-weighted close so the settlement price dominates the bar.
• Average Price TransformAverages all four OHLC prices into one value per bar.
• Heikin-Ashi TransformRebuilds each bar as a Heikin-Ashi candle, averaging OHLC into the smoothed close and carrying the smoothed open forward from t…
• Log Price TransformTakes the natural logarithm of each close and the first difference of those logs.
• Normalized Price TransformConverts close into a rolling z-score against its own moving average and standard deviation.