Relative Strength

Relative strength compares how a stock is performing against a benchmark — usually a broad index or its sector — rather than looking at its price alone. A stock can be falling and still show strong relative strength if it's falling less than the benchmark around it; the same logic applies in a rising market, where a stock up 5% while its benchmark is up 12% is technically positive but relatively weak. Stocks holding up better than the market during a decline are sometimes viewed as candidates to lead once the broader market recovers. Relative strength is a different concept from RSI (Relative Strength Index) despite the similar name — RSI measures a stock's momentum against its own history, with no outside comparison involved. A relative strength reading describes the past; it doesn't guarantee the outperformance continues.