Relative strength

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

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

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

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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

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