Relative Strength (RS)

  • February 26, 2002
  • Mark Boucher

Analysis covering the early 1900s
to the mid 1980s showed that the single most reliable independent variable for
determining the strength of individual equities over the following six-month
period was relative strength. In equity markets, the strong often get stronger
and the weak often get weaker.

–Mark Boucher, from The
Hedge Fund Edge (1999, John Wiley & Sons, New York).