What is the 'Relative
Strength Index - RSI'
'Relative Strength
Index - RSI' is one of the best tools for technical analysis of Stock Market.
The relative strength
index (RSI) is a momentum indicator. Relative Strength Index (RSI) is a
momentum oscillator. RSI measures the speed and change of price movements. RSI
oscillates between zero and 100.
Relative strength
index (RSI) compares the magnitude of recent gains and losses over a certain
time period to measure speed and change of price movements of a stock or security.
Relative strength index (RSI) is primarily used to attempt to identify
overbought or oversold conditions in the trading of an asset.
The relative strength
index (RSI) is most typically used on a 14-day timeframe, measured on a
scale from 0 to 100, with high and low levels marked at 70 and 30.
The relative strength
index (RSI) is calculated using the following formula:
RSI = 100 - 100 / (1 + RS)
Where RS = Average gain of up periods during the specified
time frame / Average loss of down periods during the specified time frame
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