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--- technical_indicators:price_relative [2019/09/10 21:19]
betseyp [Using with SharpCharts]
+++ technical_indicators:price_relative [2023/09/01 19:56]
jayanthi [Introduction]
@@ Line 1: / Line 1: @@
 ====== Price Relative / Relative Strength ======
-===== Introduction =====
+===== What Is the Price Relative Indicator? =====
-The Price Relative indicator compares the performance of one security to another with a ratio chart. This indicator is also known as the Relative Strength indicator or Relative Strength Comparative. Often, the Price Relative indicator is used to compare the performance of a stock against a benchmark index, such as the S&P 500. Chartists can also use the Price Relative to compare the performance of a stock to its sector or industry group. This makes it possible to determine if a stock is leading or lagging its peers. The Price Relative indicator can also be used to find stocks that are holding up better during a broad market decline or showing weakness during a broad market advance.
+Also known as the Relative Strength indicator or Relative Strength Comparative, the Price relative indicator uses a ratio chart to compare the performance of one security to another.
+The indicator is often used to do the following:
+  * Gauge a stock's performance against a benchmark index, such as the S&P 500.
+  * Asses a stock's performance relative to its sector or industry group, so you can determine if a stock is outperforming or underperforming its peers.
+  * Identify stocks that either hold up well during broad stock market declines or exhibit weakness during market upswings.
 **Note:** At StockCharts.com, a **ratio ticker symbol** is used to create a Price Relative indicator. A ratio symbol consists of two ticker symbols joined together with a colon character (e.g., "IBM:$SPX", "$INDU:$GOLD"). The value of a ratio ticker symbol is equal to the close of the first symbol divided by the close of the second symbol.