Relative strength
How well a stock has done compared with other stocks over a recent period, often the last three to twelve months.
In plain English
Rank every stock by its return over, say, the last three months. The ones at the top have high relative strength and are often called market leaders. This is not the same as the RSI indicator, despite the similar name.
Uncle Gary explains
Relative strength is the class ranking, not the grade. A B sounds perfectly fine until you find out everyone else got an A.
Why it matters for your money
Stocks with high relative strength have tended to keep doing well for a while. That makes it hard for any extra signal on top of it to add something new, as our dip test showed.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.