Sunday, December 4

Month: April 2022

How Is The Relative Strength Index Calculated?
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How Is The Relative Strength Index Calculated?

Relative strength index (RSI) is a momentum indicator that measures the price movements of an asset over a given period of time. The ratio of up-to-down changes is the most helpful in oscillating markets, where prices often move in opposite directions. It is also useful for traders who are unfamiliar with technical analysis. Generally, the relative strength index is calculated using 14-day averages. Some analysts and investors use a longer period, such as 20-days. RSI readings must be interpreted according to the primary trend of the stock. A positive reading is a sign that the price is likely to rise, while a negative reading indicates that the market is likely to fall. In order to get the most accurate readings, it is important to check the trend of the stock and determine whether its c...