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Comparative relative strength indicator or CRS indicator is a simple yet effective indicator for finding profitable trading opportunities. The indicator simply compares the performance of two securities/sectors/markets, or a security with the market or sector. CRS is calculated by dividing the first security price by the second security/market (known as base security or benchmark) price.


Comparative relative strength is also an easy to interpret indicator.

• When CRS is moving up, the first security is performing better than the base security.
• When CRS is moving sidewise, the first and base securities are performing the same (same volatility).
• When CRS is moving down, the first security is performing worse than the base security.

Comparative relative strength indicator is widely used by traders to develop spreads; to buy the outperforming security and to sell the underperforming security. It can also be utilized for better portfolio tuning to maximize returns. CRS indicator is helpful for all kinds of traders trading all kinds of securities - stocks, options, ETFs, mutual funds, futures and forex currencies.

Footnote: Comparative relative strength indicator is totally different from Relative Strength Indicator or RSI. The latter is used to find oversold and overbought levels.

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