Investors weigh different trends in stock performance with RS Rating and RS Line
The Relative Strength Rating (RS Rating) and the RS Line are two different indicators used to assess stock performance. The RS Rating measures a stock's price performance over the past year, ranking it on a scale from 1 to 99. In recent months, both indicators have shown strong performance for certain stocks. For example, in November 2023, a stock had an RS Rating of 95 and an RS Line at new highs, indicating strong momentum. However, the RS Line can react more quickly to stock downturns than the RS Rating. It helps investors determine if a stock is outperforming the market, which can influence the decision to invest.