Relative strength

Relative strength is a ratio of a stock price performance to a market average (index) performance. 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.

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.

Comparison with the relative strength index

Relative strength compares the performance of one security, sector, or market with another, usually by dividing the price of the first by the price of a benchmark or comparison asset. This produces a ratio line that rises when the first asset is outperforming the comparison asset and falls when it is underperforming.

The relative strength index is a different technical indicator. It is a momentum oscillator that measures the speed and magnitude of recent price movements of a single security, rather than comparing that security directly with a benchmark. The two terms are therefore related in name but measure different concepts in technical analysis.

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
  7. ↑ "Price Relative / Relative Strength". StockCharts ChartSchool. Retrieved 28 June 2026.
  8. ↑ "Relative Strength Index (RSI)". StockCharts ChartSchool. Retrieved 28 June 2026.