![]() The average gain during advances within a set time period.On a price chart, the RSI indicator is plotted as a single line that is calculated by combining the following information over a given period: The RSI is displayed as an oscillator (a line graph that fluctuates between two extremes) and oscillates between 0 and 100. The RSI is considered a momentum indicator which means that it’s used to determine the speed and strength of price movement and whether the underlying momentum is strengthening or weakening.Īside from helping traders identify price momentum, RSI is also used to identify overbought and oversold conditions, as well as divergence and hidden divergence signals and first appeared in 1978, in his book, “ New Concepts in Technical Trading Systems.” It does this by keeping track of recent price gains and losses and compares them to the current price. The RSI or Relative Strength Index is a technical indicator that measures the strength or weakness of a currency pair by comparing its up movements versus its down movements over a given time period.
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