{"id":5222,"date":"2025-12-31T16:51:10","date_gmt":"2025-12-31T11:21:10","guid":{"rendered":"https:\/\/chartink.com\/articles\/?p=5222"},"modified":"2025-12-31T16:51:11","modified_gmt":"2025-12-31T11:21:11","slug":"introducing-relative-strengthrs","status":"publish","type":"post","link":"https:\/\/chartink.com\/articles\/uncategorized\/introducing-relative-strengthrs\/","title":{"rendered":"Introducing Relative Strength(RS)"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote\"><p>Relative Strength (RS) compares a stock\u2019s price performance with a benchmark index (such as the NIFTY 50) to determine whether the stock is <strong>out-performing or under-performing the broader market<\/strong>.<\/p><\/blockquote>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2>What Relative Strength Actually Measures<\/h2>\n\n\n\n<p>Relative Strength compares:<\/p>\n\n\n\n<ul><li>A <strong>stock\u2019s price performance<\/strong><\/li><li>Against the <strong>market index<\/strong> (like <strong>NIFTY 50<\/strong>)<\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2>How to use Relative Strength in Chartink<\/h2>\n\n\n\n<p>For example RSI indicator:<\/p>\n\n\n\n<ul><li>A stock may show <strong>weakness on its own<\/strong>(RSI below 20)<\/li><li>While the market remains <strong>relatively strong<\/strong>(RSI above 20)<\/li><\/ul>\n\n\n\n<p id=\"block-0c3aa1d1-ce12-4ae8-b790-ab7b0b0f870c\">Example scan: <strong><a rel=\"noreferrer noopener\" href=\"https:\/\/chartink.com\/screener\/stocks-underperforming-nifty-51\" data-type=\"URL\" data-id=\"https:\/\/chartink.com\/screener\/stocks-underperforming-nifty-51\" target=\"_blank\">Stocks under-performing NIFTY<\/a><\/strong><br><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/chartink.com\/articles\/wp-content\/uploads\/2025\/12\/chrome-capture-2025-12-30-3.gif\" alt=\"This image has an empty alt attribute; its file name is chrome-capture-2025-12-30-3.gif\"\/><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2>Relative Strength Formula with Example<\/h2>\n\n\n\n<p>One practical way to measure Relative Strength is by comparing the <strong>RSI (Relative Strength Index)<\/strong> of a stock with the RSI of the benchmark index.<br><br>Formula: Relative Strength (RS) = Stock RSI \u2212 Index RSI<br>Example Dashboard: <a rel=\"noreferrer noopener\" href=\"https:\/\/chartink.com\/dashboard\/412179\" data-type=\"URL\" data-id=\"https:\/\/chartink.com\/dashboard\/412179\" target=\"_blank\">TCS x NIFTY<\/a><br><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" width=\"1091\" height=\"157\" src=\"https:\/\/chartink.com\/articles\/wp-content\/uploads\/2025\/12\/image-4.png\" alt=\"\" class=\"wp-image-5245\"\/><\/figure>\n\n\n\n<p><strong>Using the example data:<\/strong><\/p>\n\n\n\n<ul><li><strong>Stock (TCS) RSI:<\/strong> 55.30<\/li><li><strong>Index (NIFTY) RSI:<\/strong> 48.93<\/li><li><strong>RS(TCS x NIFTY)<\/strong>: +6.37 (The <strong>benchmark RSI<\/strong>, not a derived value.)<\/li><\/ul>\n\n\n\n<p>Since the Relative Strength value is <strong>positive<\/strong>, it indicates that <strong>TCS is performing better than the NIFTY index<\/strong> at that time.<\/p>\n\n\n\n<p>If Stock RSI &gt; Index RSI \u2192 <strong>Relative Strength<\/strong><br>If Stock RSI &lt; Index RSI \u2192 <strong>Relative Weakness<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3><strong><strong>Relative Strength Using 52-Week Price Performance<\/strong><\/strong><\/h3>\n\n\n\n<p>Relative Strength can also be calculated using <strong>52-week price performance<\/strong>, which is commonly used for <strong>medium- to long-term stock selection<\/strong>.<\/p>\n\n\n\n<p>This approach normalises a stock\u2019s price performance against the index over the same period.<\/p>\n\n\n\n<h3><strong>Formula (52-Week Performance-Based RS)<\/strong><\/h3>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Relative Strength (RS) = (Stock Close \u00f7 Stock Close 52 Weeks Ago) \u00f7 (Index Close \u00f7 Index Close 52 Weeks Ago) \u2212 1<\/p><\/blockquote>\n\n\n\n<p>Example scan: <a rel=\"noreferrer noopener\" href=\"https:\/\/chartink.com\/screener\/stock-with-rs-positive-w-r-t-nifty-50-i-e-outperform-nifty-50-in-52-weeks\" data-type=\"URL\" data-id=\"https:\/\/chartink.com\/screener\/stock-with-rs-positive-w-r-t-nifty-50-i-e-outperform-nifty-50-in-52-weeks\" target=\"_blank\">Stock with RS positive w.r.t NIFTY 50<\/a><br>Chart Snapshot: <a href=\"https:\/\/chartink.com\/stocks-new?load-snapshot=relative-strengh-rs-chart-snapshot-2\" data-type=\"URL\" data-id=\"https:\/\/chartink.com\/stocks-new?load-snapshot=relative-strengh-rs-chart-snapshot-2\" target=\"_blank\" rel=\"noreferrer noopener\">Relative strength on Chart<\/a><\/p>\n\n\n\n<h3><strong>How to Interpret 52-Week RS<\/strong><\/h3>\n\n\n\n<ul><li>RS <strong>above 0<\/strong> \u2192 Stock has <strong>outperformed<\/strong> the index<\/li><li>RS <strong>below 0<\/strong> \u2192 Stock has <strong>underperformed<\/strong> the index<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" width=\"1000\" height=\"614\" src=\"https:\/\/chartink.com\/articles\/wp-content\/uploads\/2025\/12\/chrome-capture-2025-12-31.gif\" alt=\"\" class=\"wp-image-5250\"\/><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3><strong>Relative Strength Using 5-Day Performance Ranking vs NIFTY<\/strong><\/h3>\n\n\n\n<p>This is another method of applying <strong>Relative Strength (RS)<\/strong>, where stocks are ranked based on their <strong>price out-performance versus NIFTY over the last 5 trading days<\/strong>.<br><br>Example Dashboard: <a rel=\"noreferrer noopener\" href=\"https:\/\/chartink.com\/dashboard\/412530\" data-type=\"URL\" data-id=\"https:\/\/chartink.com\/dashboard\/412530\" target=\"_blank\">Top-10 stock Outperform stocks<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><strong>Relative Strength comparisons must use the same indicator and timeframe for both the stock and the index.<\/strong><\/p>\n\n\n\n<ul><li><strong>Stock RSI vs Index RSI<\/strong> \u2192 \u2705 <\/li><li><strong>Stock 15 minute MACD vs <strong>15 minute <\/strong><\/strong> <strong>Index MACD<\/strong> \u2192 \u2705 <\/li><li><strong>Stock Close vs Index Close<\/strong> \u2192 \u2705 <\/li><li><strong>Stock RSI vs Index MACD<\/strong> \u2192 \u274c not logically correct<\/li><li><strong>Stock RSI (Daily) vs Index RSI (15-min)<\/strong> \u2192 \u274c not logically correct<\/li><\/ul>\n\n\n\n<p>Only the instrument should differ (stock vs index); the measurement method must remain identical.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Relative Strength (RS) compares a stock\u2019s price performance with a benchmark index (such as the NIFTY 50) to determine whether the stock is out-performing or under-performing the broader market. What Relative Strength Actually Measures Relative Strength compares: A stock\u2019s price performance Against the market index (like NIFTY 50) How to use Relative Strength in Chartink &hellip; <a href=\"https:\/\/chartink.com\/articles\/uncategorized\/introducing-relative-strengthrs\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Introducing Relative Strength(RS)&#8221;<\/span><\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/posts\/5222"}],"collection":[{"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/comments?post=5222"}],"version-history":[{"count":20,"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/posts\/5222\/revisions"}],"predecessor-version":[{"id":5259,"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/posts\/5222\/revisions\/5259"}],"wp:attachment":[{"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/media?parent=5222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/categories?post=5222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chartink.com\/articles\/wp-json\/wp\/v2\/tags?post=5222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}