Relative Strength Calculator

Relative Strength Calculator

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Investors and traders often rely on key metrics to make informed decisions in the stock market. One of the most important indicators is Relative Strength (RS) and its derivative, the Relative Strength Index (RSI). These metrics help you understand whether a stock or investment is outperforming or underperforming compared to a benchmark or index.

Our Relative Strength Calculator is a free online tool designed to simplify these calculations. It provides instant insights into price changes, index changes, RS, and RSI values, helping traders and investors make timely decisions.

What is Relative Strength (RS) and Relative Strength Index (RSI)?

Relative Strength (RS) measures the performance of an asset compared to a market benchmark over a specific period. For example, if a stock grows faster than a stock index like the S&P 500, its RS value will be greater than 1.

Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. It helps identify overbought or oversold conditions:

  • RSI > 70: The asset may be overbought.
  • RSI < 30: The asset may be oversold.

By using our Relative Strength Calculator, you can quickly analyze your investments without manual calculations.

Benefits of Using the Relative Strength Calculator

  1. Quick Calculations: Instantly compute RS and RSI without complicated formulas.
  2. Compare Assets: Determine whether a stock is outperforming or underperforming its benchmark.
  3. Identify Trading Opportunities: Spot overbought or oversold conditions with RSI values.
  4. Time-Saving: Avoid manual calculations and reduce human error.
  5. Investment Insights: Gain a clearer understanding of market trends and potential buy/sell signals.

How to Use the Relative Strength Calculator

Using this tool is straightforward. Follow these steps:

  1. Enter Current Value:
    Input the latest value of the asset you want to analyze.
  2. Enter Previous Value:
    Provide the previous value of the asset for the period you want to analyze.
  3. Enter Time Period:
    Specify the number of days between the current and previous values.
  4. Enter Comparison Index Value:
    Input the current value of the market index or benchmark you want to compare against. If you do not have a separate previous index value, the tool assumes it is equal to the previous asset value.
  5. Click “Calculate”:
    The calculator will display:
    • Price Change (%) – The percentage change of the asset over the selected period
    • Index Change (%) – The percentage change of the benchmark index
    • Relative Strength (RS) – The ratio of the asset change to the index change
    • Relative Strength Index (RSI) – Momentum indicator ranging from 0 to 100
  6. Reset for New Calculation:
    Click the “Reset” button to clear inputs and perform another analysis.

Example Calculation

Let’s walk through a practical example:

Scenario:

  • Current Value of Stock: $120
  • Previous Value of Stock: $100
  • Time Period: 10 days
  • Comparison Index Value: $110

Step 1: Calculate Price Change (%)Price Change=120−100100×100=20%\text{Price Change} = \frac{120 – 100}{100} \times 100 = 20\%Price Change=100120−100​×100=20%

Step 2: Calculate Index Change (%)Index Change=110−100100×100=10%\text{Index Change} = \frac{110 – 100}{100} \times 100 = 10\%Index Change=100110−100​×100=10%

Step 3: Calculate Relative Strength (RS)RS=2010=2RS = \frac{20}{10} = 2RS=1020​=2

Step 4: Calculate Relative Strength Index (RSI)RSI=100−1001+RS=100−1001+2=66.67RSI = 100 – \frac{100}{1 + RS} = 100 – \frac{100}{1 + 2} = 66.67RSI=100−1+RS100​=100−1+2100​=66.67

Analysis:
The RS of 2 indicates that the stock is performing twice as well as the benchmark index. The RSI of 66.67 suggests the stock is approaching overbought territory but not yet excessively so.

Tips for Using the Relative Strength Calculator Effectively

  1. Track Multiple Assets: Use the calculator to compare several stocks to their benchmarks to find the strongest performers.
  2. Monitor Trends: Regularly calculate RSI over different periods to detect trends or reversals.
  3. Combine with Other Indicators: Use RS and RSI alongside moving averages, MACD, or volume indicators for more reliable signals.
  4. Set Alerts: For overbought or oversold RSI levels, consider alerts to evaluate potential entry or exit points.
  5. Analyze Different Time Frames: Compare short-term vs. long-term RS and RSI to identify consistent performance.

Common Scenarios Where the Calculator Helps

  • Stock Selection: Identify stocks outperforming the market for potential investment opportunities.
  • Portfolio Evaluation: Compare each stock in your portfolio to market indices to balance investments.
  • Market Timing: Use RSI to time buy or sell decisions effectively.
  • Trend Confirmation: Confirm price trends with relative performance metrics.
  • Risk Management: Detect overbought conditions to reduce risk exposure.

Frequently Asked Questions (FAQs)

  1. What is Relative Strength?
    Relative Strength measures an asset’s performance compared to a benchmark index over a specific time period.
  2. What is the Relative Strength Index (RSI)?
    RSI is a momentum oscillator that identifies overbought or oversold conditions on a scale of 0 to 100.
  3. Is this tool free to use?
    Yes, the Relative Strength Calculator is completely free and requires no registration.
  4. Can I calculate RS and RSI for any asset?
    Yes, it works for stocks, ETFs, cryptocurrencies, and other tradable instruments.
  5. Do I need previous index values?
    Not necessarily. If not provided, the calculator assumes the previous index value equals the previous asset value.
  6. Is the calculation accurate?
    The calculator provides accurate results based on the inputs you provide. Market fluctuations may vary in real-time.
  7. How often should I calculate RSI?
    It depends on your trading style. Short-term traders may calculate daily, while long-term investors may check weekly or monthly.
  8. Can I use it for long-term investments?
    Yes, RS and RSI can be applied over any time frame, from days to years.
  9. Does the calculator include dividends?
    No, it calculates price-based RS and RSI. Dividend-adjusted analysis should be done separately.
  10. Can I use this on a mobile device?
    Yes, the calculator is fully responsive for desktops, tablets, and smartphones.
  11. How do I interpret RSI values?
  • 0–30: Oversold, potential buy signal
  • 30–70: Neutral, trend continuation
  • 70–100: Overbought, potential sell signal
  1. Can I compare multiple benchmarks?
    Yes, you can perform multiple calculations using different index values to compare relative performance.
  2. Will my data be stored?
    No, all calculations are performed locally in your browser; no personal data is saved.
  3. Can I print or save the results?
    Yes, results can be copied, exported, or screenshot for records.
  4. Does this tool replace professional financial advice?
    No, it is a helpful tool for analysis but should be used alongside professional advice and research.

Conclusion

The Relative Strength Calculator is a powerful tool for traders, investors, and anyone interested in tracking stock performance. It offers clear insights into price changes, relative performance against a benchmark, and momentum through RSI.

By using this calculator, you can make more informed investment decisions, identify high-performing assets, and monitor market trends efficiently.