From Wikipedia, the free encyclopedia

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. ^ [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