In modern markets, performance is relative, not absolute.

Key question:

Is this asset outperforming alternatives?

Relative Strength (RS) answers this by comparing an asset to a benchmark.

Both may rise — yet capital can still rotate away from one of them.

Relative Strength ratio:

RS = Asset / Benchmark

Applying moving averages:

• smooths noise
• reveals persistence
• defines leadership regimes

Interpretation:

• RS above MA → outperformance
• Fast MA > Slow MA → sustained leadership

RSMA reflects capital allocation, not prediction.

Leadership trends persist until flows change.

• Above zero → outperformance regime
• Below zero → underperformance regime

This acts as a bias filter, not an entry trigger.

ToolMeasuresRSIInternal momentumRSMARelative performance

The strongest trends occur when:

• price trend is up
• RSI holds bullish range
• RSMA confirms leadership

• Equities: sector and stock selection
• Crypto: ALT / BTC rotation
• Macro: risk-on vs defensive shifts

• RSI defines momentum health
• RSMA defines capital leadership

Together, they form a modern momentum framework suited for ETF-driven, algorithmic markets.

Alpha no longer comes from prediction — it comes from alignment with flows.