Relative Strength (RS)

Relative Strength (RS) is a measure of price trend that indicates how a stock is performing relative to other stocks in its industry.

Relative Strength (RS)

Relative Strength (RS) is a measure of price trend that indicates how a stock is performing relative to other stocks in its industry.

 


Relative Strength Interpretation

Relative strength determines which investments (stock, exchange-traded fund or mutual fund) are the strongest performers, compared to the overall market, and recommends those investments for purchase. 

Relative Strength: Starbucks versus S&P 500 (courtesy of stockcharts.com)

Relative Strength: Starbucks versus S&P 500 (courtesy of stockcharts.com)



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