Comparative Relative Strength

Comparative Relative Strength simply compares the price of one security with the price of another security or an index. It is most often used to compare a stock with an index or the sector to which it belongs.
When the market or an individual sector is trending up, traders like to concentrate their buying in the strongest stocks, and Price Relative helps to identify which stocks are leading.
When the market or an individual sector is trending down, traders like to concentrate their shorting in the weakest stocks, and Price Relative helps to identify which stocks are lagging.
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