Mastering the Madness: Seven Relative Strength Movements Fueling the Meme Stock Frenzy

The Role of Retail Investors

The second movement is the increasing influence of retail investors. In the past, the stock market was dominated by institutional investors who had access to sophisticated analytical tools. However, the advent of commission-free trading apps like Robinhood has democratized investing, allowing retail investors to play a more significant role. These investors often rely on relative strength indicators to identify potential meme stocks, contributing to their sudden increase in value.