Quotes from Legends: Relative Strength

Relative Strength (n-th Period)
This is a measure of the price performance of a stock in comparison with its own industry and/or market index for a stated time period.

Pg 25: The hard-to-accept great paradox in the stock market is that what seems too high and risky to the majority usually goes higher and what seems low and cheap usually goes lower.

Pg 35-36: If the stock's relative price strength, on a scale from 1 to 99, is below 70, it's lagging the better-performing stocks in the overall market. That doesn't mean it can't go up in price. It just means if it goes up, it will rise a mere inconsequential amount......A relative strength of 70, for example means a stock outperformed 70% of the stocks in the comparison group during a given period, say, the last six or twelve months. The 500 best-performing listed equities for each year from 1953 through 1983 averaged a relative price strength rating of 87 just before their major increase in price actually began......Look for the genuine leaders!.....you should consider restricting your buys to companies showing a relative strength rank of 80 or higher.....If a relative price strength line has been sinking for seven months or more, or if the line has an abnormally sharp decline for four months or more, the stock's behavior is questionable.

Pg 106: Poor relative price strength can be a reason for selling. Consider selling when a stock's relative strength on a scale from 1 to 99 drops below 70.
How to Make Money in Stocks by William J O'Neil, McGraw Hill.

Since at least the 1990's.....academic studies started showing that stocks that had risen the most over a six-month period, on average, outperformed the market for an additional 6 to 12 months- and that stocks whose prices had declined the most tended to continue lagging behind.
Why the Market Winners Tend to Keep Winning by Mark Hulbert, New York Times, May 4, 2003.

Guru Acknowledgements xxx: The highest scoring Q-Rank companies show strong relative strength, recent positive earnings surprises, and strong and accelerating earnings growth.
Collins looks to the stock charts, specifically weakening relative strength, for his sell signals. He also considers high valuations compared to the company's own historical values as a red flag.
Fire Your Stock Analyst! Analysing Stocks On Your Own by Harry Domash.