Relative strength is a ratio of a stock price performance to a market average (index) performance.[1] It is used in technical analysis.

It is not to be confused with relative strength index.

To calculate the relative strength of a particular stock, divide the percentage change over some time period by the percentage change of a particular index over the same time period.[2]

Relative Rotation Graph

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Relative Rotation Graphs (RRG) show the relative strength and momentum of mood swings in the market compared to benchmarks. The "JdK RS-Ratio" (relative strength, RS) was developed by Julius de Kempenaer, a sellside analyst in The Netherlands.[3][4][5][6]

References

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  1. ^ [1] Investopedia | terms
  2. ^ [2] Relative Strength | AAII
  3. ^ [3] Investing Dynamic Environment | See page 4
  4. ^ [4] Relative Rotation Graphs | See pages 45, 46
  5. ^ [5] Relative Rotation Graphs | Optuma
  6. ^ [6] Relative Rotation Graphs | Stock Charts