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Nikita (SEBI RA)

31st Jul 2025 · SEBI-Registered Analyst

The Power of Relative Strength – How to Find Winning Stocks in Any Market

Markets can be flat or falling, but some stocks still outperform — that’s where Relative Strength (RS) becomes your edge. 🔹 RS compares a stock’s performance vs a benchmark (like Nifty 50 or sector index). A stock showing RS > 0 during market weakness is likely under accumulation. ✅ How to Use RS in Analysis: Identify stocks making higher highs while the index is sideways Use tools like William O'Neil’s RS Line or TradingView’s RS Rating In bullish markets, RS helps you pick leaders In bearish markets, RS helps you avoid weak stocks 📌 Example: In a falling market, Stock X still holds its 20 EMA and hits a new 52-week high — this is relative strength. These are the first stocks to rally when markets recover. 🧠 Pro Tip: Always build your watchlist with high RS stocks in strong sectors. That's where breakout moves often begin.

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