In most financial markets, one of the most technical indicators to date is the RSI Relative Strength Index. This indicator is primarily used in charting the strength and weakness of both the past and current state of the stock or market, in general. The closing prices of stocks in the most recent trading period shall also be taken into consideration as part of the overall analysis of the financial market.

It is considered as an oscillator which is used to measure the momentum of the price movements of stocks within the given period. The ratio of higher closes to lower closes is defined by RSI as the momentum. The RSI therefore calculates the momentum of certain stocks by identifying their positive and negative changes; so that the stocks get a higher RSI if they have had stronger positive changes in a particular time frame. Otherwise, the stocks get a lower RSI.

Lees de rest van dit item