How the relative strength (RS) rating is calculated
A 1-99 percentile rank of weighted 3, 6, 9 and 12-month performance.
The RS rating ranks every NSE stock in the technical universe by its price performance against every other stock, on a 1-99 scale where 99 is the strongest.
Performance score = 0.4 × 3-month return + 0.2 × 6-month + 0.2 × 9-month + 0.2 × 12-month
RS rating = 1 + 98 × (rank − 1) ÷ (number of stocks − 1), rank 1 = weakest performance score
The most recent quarter carries double weight, so the rating responds to current leadership without ignoring the longer record. A stock needs at least two of the four windows to be rated. This follows the approach popularised by William O'Neil's Investor's Business Daily ratings.
Separately, each stock's return is compared with the Nifty 50 over 1, 3, 6 and 12 months (RS vs Nifty) and with its own sector's median (RS vs sector), so you can tell a stock that leads the market from one riding a strong sector.
Where this is used
Other methodology
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Data sources
