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 ?
Compared with set 3, in set 4, there are two more braces in the bottom arch and two more braces in the top arch, and the relative strength of the top arch reaches 1.097 (|[absolute value of [k.sub.3]] [absolute value of [k.sub.4]) in set 4.
In this paper, we study the implications of market cycles on relative strength strategies at both the medium-run and longer-run horizons.
The relative strength index is used together with other technical indicators to signal when a security is overbought or oversold - thresholds that can be set as desired
Such is the relative strength of London and the South East in holding the market up, house prices would have remained unchanged across the UK if these regions were not included in the figures, the ONS report showed.
"An employer is in a position of relative strength to know what the basic requirements of the law are in relation to annual leave."
BRITISH holidaymakers driving to Europe are likely to pay significantly less at the pump this year due to the relative strength of the pound, a report has found.
* Software that allows engineers to quickly confirm signal presence and relative strength.
London registered an annual house price increase of 3.2% and continued to show its relative strength with an average of pounds 346,123.
Besides, the relative strength index (RSI) diverges negatively from the trading price, which implies danger for a negative reaction.
THE Flat handicapper seems to be slowly coming round to the relative strength of this year's juvenile fillies and has raised Moyglare winner Maybe 3lb to a mark of 116.
For each commodity market we examine here, we set out the structures of the markets and the major drivers of world demand and supply, and discuss the apparent relative strength of each of the drivers.
FRANK SHERIDAN is a trainer with his string in good nick and he can have a winner at Catterick courtesy of Relative Strength in tomorrow's Crabbies Alcoholic Ginger Beer Claiming Stakes (6.30).

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