Relative Strength Index (RSI)

Discussion in 'Forex Encyclopedia' started by ibm'73, Nov 6, 2017.

  1. ibm'73

    ibm'73 Active Member

    RSI is basically the indicator that tells us the momentum or strength of a market movement. Below is a formula for calculating RSI.


    Such an indicator indicator
    Otherwise, all calculations will be made by the graph program automatically.
    RS = average number of days close "with profit / average number of days close" with loss.
    RSI has a reading of 0 - 100. A trend is always considered "overbought" by traders when the RSI reads upwards 70, and "oversold" when RSI shows 30 down.


    Since RSI is a lagging indicator, it also has a weakness
    alone. The strong and strong market movements can have a strong impact on RSI and it may give a "false" signal.
    Nia likes this.
  2. Nia

    Nia Member

    thank you once his information for a very useful article
  3. ibm'73

    ibm'73 Active Member

    thank goodness that this article gives a lot of feedback for you before you make a transaction
    Nia likes this.
  4. andengireng

    andengireng Member

    The weakness of RSI :
    From the emerging RSI signal, the price / trend will continue to move upwards, but if at that moment the trader immediately opens a position based on this sell signal, the trader will be stuck in the trading that will continue to lose

Share This Page