Relative Strength alerts notify you when a stock’s performance compared with the wider market begins to change.
By default, TradeSentinel compares the stock with SPY, which represents the S&P 500. You can also select another reference index or ETF.
Relative Strength shows whether the stock is performing better or worse than its reference market.
Rising RS: The stock is outperforming the reference index.
Falling RS: The stock is underperforming the reference index.
This is not the same as RSI. Relative Strength compares the performance of two assets.
An upward alert is triggered when the stock’s RS crosses above its RS moving average.
This may indicate that relative performance is improving and that the stock is beginning to outperform its reference index.
It is a reason to pay attention—not an automatic buy signal.
For a potential new trade, check whether the improving RS is supported by:
a healthy price trend
intact structure
constructive volatility
improving momentum
a suitable price location
For an existing position, the crossover may confirm that the stock is regaining or strengthening its market leadership.
A downward alert is triggered when the stock’s RS crosses below its RS moving average.
This may indicate that relative performance is weakening and that the stock is beginning to underperform its reference index.
For an existing position, review whether:
the price trend remains intact
the stock is losing leadership
momentum is deteriorating
important support is holding
the weakness is temporary or part of broader structural damage
For a potential new trade, deteriorating RS may be a reason to wait until leadership improves.
A stock’s relative performance can change before the change becomes obvious from its price chart alone.
For example:
A stock may still rise, but rise more slowly than the market.
A stock may move sideways while the market falls, showing hidden strength.
A stock may hold its price while its RS gradually deteriorates.
A previously weak stock may begin outperforming before breaking out.
The alert brings this change to your attention without requiring you to monitor the RS chart continuously.
The alert does not tell you to trade. It tells you that the stock’s position relative to the market has changed and deserves review.
Alert | What it may mean | Typical response |
RS crosses upward | Relative performance is improving | Review for emerging leadership |
RS crosses downward | Relative performance is weakening | Review existing risk or delay entry |
Always evaluate the alert together with price trend, structure, volatility, momentum, and invalidation.