Today we are going to talk about one of the oldest classic indicators of technical analysis (TA) - the relative strength index RSI. This indicator is included in all trading platforms, it is used in thousands of trading systems in all markets. The index is actively used by both professional and novice traders. This is one of the most popular and effective momentum oscillators, which measures the magnitude of price movement, as well as the speed (rapidity) of these movements. The RSI can be a very useful tool depending on the type of trade being performed.
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RSI Formula
RSI = 100 - 100 / (1 + RS)
RS = Average Gain / Average Loss