relative strength


Also found in: Acronyms.

Relative strength

Movement of a stock price over the past year as compared to a market index (like the S&P 500). A value below 1.0 means the stock shows relative weakness in price movement (underperformed the market); a value above 1.0 means the stock shows relative strength over the one-year period. Equation for Relative Strength: [current stock price/year-ago stock price] divided by [current S&P 500/year-ago S&P 500]. Note: this can be a misleading indicator of performance because it does not take risk into account.

Price Momentum

The performance of a stock relative to its industry or the performance of an industry relative to the market as a whole. A stock (or industry) that outperforms its industry (or market) for a given period of time is seen as a bullish sign for that stock (or industry). The concept is also called relative strength.

relative strength

The price strength of an individual stock compared with the strength of an industry index or a general market index. In general, a stock that acts stronger than its industry or the market as a whole shows a bullish sign for that stock. Likewise, an industry index that acts stronger than a market index is bullish for stock in that industry. Relative strength is typically used when calculating an index of a stock's price to its industry or market index over a period of time. Also called strength.
References in periodicals archive ?
In this paper, we study the implications of market cycles on relative strength strategies at both the medium-run and longer-run horizons.
By extending the analysis we can also determine the revealed relative strength of World Series teams based upon the actual outcome of the 97 World Series played as best-of-seven series.
This book will guide investors learning relative strength strategies that allow for success in trading and investing in both bull and bear markets.
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Click the following link to see a Weekly chart of Terra Industries since July 2006 with 10-week moving average and a Daily relative strength chart, Terra Industries versus the S&P 500 Index, since August 2006: http://www.
Click here to see a Daily chart of AMD since October 2006, a Weekly chart of AMD since February 2006 with 10-week and 20-week moving averages, a Weekly relative strength, SMH VS SPX since January 2006, and a Weekly relative strength, AMD VS SMH since March 2006: http://www.
Click the following link to see a Daily Chart of HD Since February 2006 With 10-Day Moving Average, a Monthly Chart of HD Since January 1999 With 10-Month Moving Average, a Weekly Chart of LOW Since May 2003 With 10-Week and 20-Week Moving Averages, Monthly Chart of LOW Since January 1995 With 50-Month Moving Average, and a Monthly Relative Strength, LOW vs.
Click the following link to see a Weekly and Monthly Charts for WMT and TGT, as well as a Monthly Relative Strength Chart comparing the two: http://www.
Click the following link to see a Relative strength chart of S versus SPX since July 2005 and a Daily chart of S since April 2006 with 50-day and 80-day moving averages: http://www.
Click here to see a Monthly Chart of WMT Since January 1998 With 80-Month and 160-Month Moving Averages and a Monthly Relative Strength, WMT vs.

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