Trends/Relative strength, cycles and structure

Relative strength ratio

The stock's price divided by an index's price, so you can see if it is gaining or lagging.

Relative strength, cycles and structureBest on 6M, 1Y, 3YAlso called price relative, comparative strength

Illustration of the relative strength ratio shape. It is a sketch, not real price data.

What it shows

A relative strength ratio is the stock's close divided by the index's close, for example a stock divided by the S&P 500. If the line rises, the stock is rising faster (or falling slower) than the index.

This is different from RSI. It compares two assets, not one asset with itself.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Pick a benchmark such as the S&P 500.
Ratio = stock close ÷ benchmark close.
Scale so the first value is 100.
Plot under the price.

Starting values: Benchmark S&P 500. These are proposed and will be tuned on real price data before launch.

How to read it

The panel shows the ratio.
Rising: the stock is beating the index.
Falling: lagging it.

Status labels you may see

Label	What it means
Outperforming	Ratio above its value 63 bars ago.
Lagging	Ratio below its value 63 bars ago.
In line	Within 2%.

What cancels it

Nothing cancels it.

What traders check next

The benchmark chosen.
Time frame.
Whether the ratio is making new highs.

Limits

Depends on the benchmark.
Past outperformance is not a forecast.
Both series can fall while the ratio rises.

Try it in forecastviz

Open any ticker and choose Relative strength, cycles and structure → Relative strength ratio in the left menu.
Switch between 6M, 1Y, 3Y to see how the picture changes.
Compare with Relative strength line new high and Sector relative strength on the same chart.

Open on a ticker

Questions

Is it the same as RSI?

No. RSI looks at one price, this compares two.

Which index?

Whichever best matches the stock's market.