Differences Understandable in 30 Seconds
RPSIs the 'cross-sectional ranking within the market' that compares multiple stocks over the same periodRSIIs the 'time-series oscillator' that uses the recent rise and fall amplitudes of a single stock. Both appear near 0 to 100, but inputs, purposes, and meanings differ
Comparison Table of RPS and RSI
| Comparison Items | RPS | RSI |
|---|---|---|
| General Name | Relative Price Strength | Relative Strength Index |
| Comparison Object | Multiple Stocks in the Same Market | Value Fluctuations of a Single Stock Itself |
| Input | Returns Over the Same Period for Each Stock | Rise and Fall Amplitudes Over a Certain Period |
| Main Questions | Relatively Strong or Weak Within the Market | Whether Recently Overbought or Oversold |
| Meaning of 90 | Position Above Approximately 90% of Valid Stocks | Generally Higher Overheated Level, But Depends on Settings |
| Population | Requires Target Market and Number of Valid Stocks | Price Series of the Target Stock Itself |
| Future Predictions | Does Not Guarantee | Does Not Guarantee |
Questions Answered by RPS
RPS answers whether this stock was stronger than other stocks in the market during the same period. For Japanese stocks, RPS 90 means the position above approximately 90% of the valid population in the price performance during the target period. It does not mean that the price has risen by 90%, nor does it mean overbought
Comparison results change depending on the market, period, observation day, and number of valid stocks. It is important not to treat RPS from different markets as a single mixed ranking
Questions Answered by RSI
RSI is an oscillator that expresses the balance of rise and fall amplitudes over a certain period for a single stock as 0 to 100. In general explanations, levels above 70 to 80 are considered overbought and below 20 to 30 are considered oversold as reference levels, but in strong trends, higher or lower states can persist
That is, RSI does not rank other stocks outside the target stock but examines the recent value movements within the target stock
Similar Numbers but Different Meanings
Misconception: RPS 90 = Overbought
RPS 90 is a cross-sectional ranking. It is not a number that directly determines overbought
Misconception: RSI 70 = Top 30% in the Market
RSI 70 is a time-series calculation for a single stock. It does not mean market ranking
Misconception: If Both Are High, the Rise Is Certain
Both are summaries of past prices and do not guarantee future prices or losses
Misconception: If Names Are the Same, the Formulas Are the Same
The term Relative Strength has multiple definitions. Confirm the formula and population
Confirmation Order When Combined
First Use RPS to Confirm Position Within the Market
Confirm the cross-sectional ranking in the same market, same period, and same observation day
Verify the short-term status of one stock using RSI
Set the RSI period and check the possibility that high and low will persist in a trending market.
Separate evidence other than price
Verify volume, liquidity, earnings, market direction, and risk conditions separately.
Frequently Asked Questions about RPS and RSI
Are RPS and RSI the same relative strength?
They are not the same. RPS is a cross-sectional ranking of multiple stocks, while RSI is a time-series oscillator calculated from the rise and fall ranges of a single stock.
Does RPS90 mean overbought?
It does not mean that. RPS90 indicates relative performance in the top approximately 10% within the market, and is separate from the overbought judgment of RSI.
Can RPS and RSI be used simultaneously?
They can be used together if purposes are divided. Use RPS to check relative positions within the market and RSI to check short-term price movements within a single stock, but neither guarantees the future.
How do you read when RPS is high and RSI is low?
In the medium to long term, it may be adjusting recently even if it is in the top within the market. However, check the period and formula, and do not make buy/sell decisions based on it alone.