Relative Strength Index

Relative Strength Index
The Relative Strength Index was developed by J. Welles Wilder, and is an extremely popular momentum oscillator that measures the speed and change of price movements.

The typically used look-back period for RSI is 14, but this can be lower/raised to increase/decrease sensitivity. The RSI oscillates between 0 and 100. Traditionally, and according to Wilder, in his 1978 book, New Concepts in Technical Trading Systems, RSI is considered overbought when above 70 and oversold when below 30. Trading signals can also be generated by looking for divergences and failure swings.

PT. Mentari Mulia Berjangka | Broker FOREX Terbaik

« Back to Glossary Index