If buy high and sell low makes no sense, then how combined with relative strength it makes a valid strategy?

Question

Maybe I just misunderstood the article from [investopedia](https://www.investopedia.com/articles/trading/08/relative-strength.asp) and someone can explain what it actually means?

In: Economics

Answer 1

With relative strength, you are not buying high and selling low in terms of value, but performance. Essentially, the percentage increase in value. So it’s saying you want to buy a stock when it’s returning 10%, but then sell it when it’s only returning 2.5%. You aren’t selling it at a low price, you’re selling it when your returns on that investment aren’t as high as they were when you purchased it.