Relative Strength (Levy)

Type

Trend indicator

Short introduction

The Relative Strength (RSL) developed by Levy must not be confused with the Relative Strength Index (RSI). Levy's view assumes that prices that performed positively in the past will continue to perform positively in the future. Relative Strength therefore does not refer to a comparison with another security or index, but rather to the security itself.

Statement

To calculate the indicator, a MA is first formed and the current price is then divided by this MA. The result thus fluctuates steadily around the line at the "1" value.

Formula/calculation

RSL = Close / Moving Average

Interpretation

The current RSL value of a security alone is not very meaningful because it only compares the current performance with the past performance. A value greater than 1 indicates that the current performance is better, a value less than 1 indicates that the current performance is worse than in the past.

Default setting

27 weeks

Example: Chart with RSL