Relative strength explained

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]}

Notes and References

1. http://www.investopedia.com/terms/r/relativestrength.asp
2. http://www.aaii.com/stock-investor-pro/article/2-measuring-performance-with-relative-strength
3. https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/risk/investing-dynamic-environment_BSC.pdf
4. https://www.yumpu.com/en/document/read/44185448/relative-rotation-graphs-rrg-market-technicians-association
5. https://www.optuma.com/relative-rotation-graphs/
6. https://school.stockcharts.com/doku.php?id=chart_analysis:rrg_charts