Relative Index is a ratio of a stock price performance to a market average performance. It is used in technical analysis
. It is not confused with RSI
indicator. To calculate the relative strength
of a particular stock,divide the percentage change over some period by the percentage change of a particular index over the same time period.A stock with a higher relative strength
than the overall index often shows a strong investment opportunity. Relative strength
is a technique used in momentum investing and identify value stock.The goal of relative strength
investing is to buy high and sell even higher.