RSI - AshokBhat/investing GitHub Wiki

Relative Strength Index (RSI)

• Used in Technical Analysis as a momentum oscillator
• Provides signals that tell investors to buy when the security or currency is oversold and to sell when it is overbought.

Mechanism

• Most typically used on a 14-day timeframe
• Measured on a scale from 0 to 100
• High and low levels marked at 70 and 30

• More than 70 - Overbought - Sell
• Less than 30 - Oversold - Buy
• Between 30 and 70 - No trend

History

• Developed by J. Welles Wilder and published in a 1978 book, New Concepts in Technical Trading Systems

See also

• Technical Analysis
• [Moving average]] ](/AshokBhat/investing/wiki/[[MACD) | RSI