What is relative strength?

The relative strength shows the investor the trend what the chosen stock is following by comparing it to other stocks or index in the given industry. This value usually shows a yearly progress. The way it’s calculated is dividing the price performance of the given share by the price performance of a given index in the same industry. If this value what we get from the above calculation is lower then 1.0 then the stock is considered as relatively weak and if the value is higher then 1.0 then the stock is considered as relatively strong.