As we delve into the world of finance, it is important to understand the concept of relative strength. This refers to the comparison of a stock or group of stocks against a predetermined benchmark, such as the Standard & Poor's 500 or the Dow Jones industrial average. When a stock performs better than the norm, with a 20% increase compared to a 10% increase, it is said to have good relative strength. This is a key factor in evaluating the overall performance of a stock in the market.
