Finance:Relative strength

From HandWiki
Revision as of 17:24, 27 June 2021 by imported>NBrushPhys (simplify)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

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