Relative Strength Scans - PaisaAlgo.com

Relative Strength Scanner is the right technique to assess how much stock is strong compared to benchmark indices like Nifty. You can calculate the relative strength for various sessions but here we have come up with the last 55 trading sessions. For other information about relative strength do check the below sections without fail.

This Report is generated On 2024-05-16 for the next trading day

Symbol	LTP	RELSTRENGTH VALUE	RELSTRENGTH
BANKBARODA	261.40 ▼-1.5(0.57%)	-0.05	Underperforming Benchmark Index
HDFCBANK	1464.10 ▲3.85(0.26%)	-0.00	Underperforming Benchmark Index
ICICIBANK	1130.50 ▼-0.55(0.05%)	0.03	Outperforming Benchmark Index
INDUSINDBK	1412.35 ▲3.6(0.26%)	-0.09	Underperforming Benchmark Index
KOTAKBANK	1696.55 ▲24.5(1.47%)	-0.07	Underperforming Benchmark Index
PNB	133.10 ▲4.85(3.78%)	0.22	Outperforming Benchmark Index
SBIN	766.10 ▲15.65(2.09%)	0.20	Outperforming Benchmark Index

What is a Relative Strength Stock Screener?

A relative strength screener is a simple indicator that does technical analysis to know how a stock performs relative to the market. This screener takes the last 55 trading sessions to find the relative strength. Mainly, it displays the list of data with outperform and underperform the benchmark index and Relstrength Value.

Why To Use Price Relative Indicators?

The price relative indicator is also known as the relative strength indicator, relative strength comparative. This indicator utilizes the ratio chart to collate the performance of one stock to another. It is also used commonly to perform the following points:

It is recognizing stocks that delay well at the time of broad stock market declines or reveal weakness while marketing upswings.
To measure the performance of stocks against the benchmark index like the S&P 500.
Assess the stock's functioning concerning its sector or industry group, accordingly find whether a stock is outperforming or underperforming its peers.

What is Relative Strength (RS)?

Relative Strength (RS) measures the performance of stocks beside its benchmark or another stock. It is commonly considered as the most popular momentum indicator.

These indicators assist investors or traders in grasping the speed at which the cost of certain stock changes. Also, it helps in understanding the strength of price movements. With the help of RS Momentum Indicators, you can even analyze the speed of the fall or rise in selected stocks.

It even makes us identify the powerful and weaker asset classes during the financial market. This Relative Strength analysis may also used for domestic or international stocks, stock indexes, fixed-income indexes, currencies, commodities, and other asset classes.

How To Calculate Relative Strength?

It's time to learn how to do the calculation of relative strength (RS). There is a simple formula that we can use to calculate the RS. This formula helps traders to compare a stock price change to an index price change. The formula to be used is as follows:

Relative Strength (RS) = Stock's price / Index's price

To calculate the relative strength of one stock to another with the same period, let's take N as the first stock and N1 as the second stock and now compare it by using the below formula:

RS = N Stock's price / N1 Index's price

How To Choose The Stocks With RS Screener?

Selecting the stocks using a relative strength screener is easy after following the below steps:

First, decide to take a long or short position.
If you take the short positions, choose the stocks that are underperforming the benchmark index and hold low RS Value.
These low RS value stocks can short at all bouncebacks.
For a long position, select the stock that outperforms the benchmark index and keep a high RS value.
These high relative strength values are good for swing trading and for entry at all pullbacks.

Final Words

Relative Strength (RS) is an excellent approach to scan for stocks that are outperforming their benchmark. We hope the shared information on RS helped you gain a lot about this important trading concept along with the best practical scanning experience.

If you still have any queries related to relative strength scans do share them with us via the below-provided comment box. Our team at paisaalgo.com surely work on your doubts and get back to you ASAP. Meanwhile, bookmark our site for more Intraday, Options, and EOD Scans trading.