Relative Strength Index

Relative Strength Index

The RSI is a popular indicatorthat shows comparative price strength within a single security. The most widelyused method for interpreting the RSI is price/RSI divergence, support/resistancelevels and RSI chart formations., which compare the internal strength of asingle instrument. The RSI compares the magnitude of a instruments recent gainsto the magnitude of its recent losses and turns that information into a numberthat ranges from 0 to 100. It takes a single parameter, the number of timeperiods to use in the calculation. The Relative Strength Index compares upwardmovements in closing price to downward movements over a selected period.

The Relative Strength Indexcompares upward movements in closing price to downward movements over aselected period.