Relative Strength is a technical analysis indicator used to compare the performance of two different investments or assets. It measures the ratio of an asset's current price to its price range over time, which helps determine whether it has been consistently outperforming or underperforming other similar assets in terms of strength and growth.
Investors use this indicator to identify stocks that have been performing better than their peers within a specific industry or sector. A high relative strength reading indicates that an asset is currently strong compared to its historical performance, while a low reading suggests it may be weak. This information can help investors make informed decisions about which assets to buy or sell based on their current market trends and potential for growth.