What is Stock Price STRENGTH

By Staff Reporters

A few big stocks can skew returns for the market. It’s important to also know how many stocks are doing well versus those that are struggling. This shows the number of stocks on the NYSE at 52-week highs compared to those at 52-week lows.

When there are many more highs than lows, that’s a bullish sign and signals Greed.

CITE: https://www.r2library.com/Resource/Title/0826102549

Now; Relative Price Strength (RPS) compares the price trend of a stock to the market.

An RPS > 1 indicates that the stock outperformed the market, an RPS < 1 indicates that the stock underperformed the market, and an RPS = 1 indicates that the stock performed on par with the market.

RPS can be misleading as it uses historical data and does not take into account risk.

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