How to Use Relative Strength Investments

How to Use Relative Strength Investments

Suggested Holding Period: 6 to 18 months

This page explains how to read and interpret the Relative Strength Investments results. This scanner is designed to identify stocks that are consistently outperforming the broader market, making them suitable for medium- to long-term investors seeking leadership rather than broad exposure :contentReference[oaicite:0]{index=0}.

The results shown here are for Index: NIFTY 50. Each row represents one stock for one trading day, evaluated from an investor’s perspective with a focus on relative performance and trend alignment.


Understanding Each Column

Symbol

The stock symbol as listed on the exchange. Each symbol uniquely identifies a company within the index.

Date

The trading date on which the relative strength evaluation was performed. All values in the row correspond to this trading session.

Close

The closing price of the stock for the given trading day.

  • Serves as the reference price for performance and trend checks
  • Used to evaluate position relative to key moving averages

Qualified

Indicates whether the stock meets the relative strength investment criteria.

  • Marked as qualified only if all required conditions are satisfied
  • Represents eligibility for relative strength–based allocation

RSI (14)

The 14-period Relative Strength Index.

  • Measures the strength of recent price movement
  • Moderate-to-strong RSI values support leadership characteristics
  • Helps avoid weak or deteriorating momentum

Volatility (20)

The 20-period volatility measure of the stock.

  • Used to assess risk associated with relative outperformance
  • Excessive volatility may reduce the quality of leadership signals

Above 50 DMA

Indicates whether the stock is trading above its 50-day moving average.

  • Confirms short- to medium-term trend strength
  • Supports continuation of relative outperformance

Above 150 DMA

Indicates whether the stock is trading above its 150-day moving average.

  • Confirms long-term trend alignment
  • Helps ensure leadership is supported by structural strength

How to Read This Data Holistically

This scanner should be interpreted by focusing on relative outperformance in combination with trend stability.

  • Qualified stocks trading above both key moving averages indicate leadership
  • Moderate volatility supports sustainable relative strength
  • Periodic review helps maintain exposure to current leaders

What This Scanner Indicates

  • Stocks outperforming the broader market
  • Leadership candidates suitable for 6–18 month holding periods
  • Relative strength combined with structural trend support

What This Scanner Does Not Indicate

  • It does not identify short-term trading opportunities
  • It does not guarantee continued outperformance
  • It does not replace diversification or portfolio management

Important Notes

  • Relative strength should be reviewed periodically as leaders change
  • A breakdown below key moving averages may invalidate the signal
  • Risk management remains essential despite relative outperformance

Disclaimer: This information is provided for educational and analytical purposes only and should not be considered trading or investment advice.


Data Update Frequency

Relative Strength Investments data is updated after market hours for each trading day.


Summary

The Relative Strength Investments scanner helps identify stocks that consistently outperform the broader market while maintaining trend stability. It is best used to focus on market leaders and periodically rotate holdings based on relative performance.