Relative strength
Technical analysisA stock’s performance measured against a benchmark index rather than in absolute terms.
In plain terms
Keeps working in a falling market, where the winner is simply whatever falls least.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
Read the full lesson →
RS line
Technical analysisAlso called: Relative strength line
A plot of a stock's price divided by an index's price, rebased to 100 at the start of the measurement period.
In plain terms
The direction is the entire signal; the level is arbitrary because it depends on when you started.
RSI
Technical analysisRelative Strength Index — an oscillator measuring the ratio of average gains to average losses over N periods.
In plain terms
Measures how one-sided recent moves have been. Overbought means strong, not doomed.
Indicator redundancy
Technical analysisThe condition in which several indicators appear to confirm one another while being different arrangements of the same underlying price data.
In plain terms
RSI, Stochastic, Williams %R, CCI and the MACD histogram all agreeing is one opinion reported five times. New information has to come from a different input — volume, breadth, relative strength.