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What is RSI Indicator

sGuru

Administrator
Staff member
RSI is probably the most used indicator among all other indicators.

RSI stands for Relative Strength Index, which is a indicator used to measure the strength of a stock's price trend. RSI is typically calculated using a mathematical formula that takes into account the average gain and loss of the stock's price over a specified period of time, which is typically last 14 days or last 14 candles.

RSI is an oscillator, which keeps between 0 and 100, its value above 70 generally indicating that the stock is overbought and stock may be due for a price correction. A value below 30 indicate that the stock is oversold, and the stock may be due for a rebound

It's important to note that the RSI is just one indicator, and it should be used in combination with other technical and fundamental analysis tools to make informed investment decisions. It's also important to remember that past performance is not necessarily indicative of future results.

Traders and investors should do their own research and consult with a financial advisor before making any investment decisions.
 
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