Relative Strength Index Calculation #shorts #krinu #relativestrengthindex #stockmarketindicator

RSI Relative strength index is an oscillator for a specific stock or index or any security , usually its calculated for the previous 14 trading days to build the chart

to get the initial values we need t first calculate the RS relative strength and build on subsequent 14 days period with the previous averages we have got to plot the graph

RSI oscillates between 0 - 100 % .
Usually its considered to be over bought when RSI crosses 70% and considered over sold when it crosses below 30% mark

RSI is an effective early indicator which measures the stregth of the asset in trading but RSI may not work precisely in a trending market which is driven by NEWS , key Events etc , in these cases the asset may be in the over Sold or Over bought levels for a longer period of time , so experienced traders use RSI in combination with other Moving averages to make well informed decesions in trading , one such can be using RSI with the Volumes data to ensure the momentum is strong or weak .

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Видео Relative Strength Index Calculation #shorts #krinu #relativestrengthindex #stockmarketindicator канала Krinu