Relative strength index (rsi): you want to study it for these buy or sell signals
Description
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.
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How this indicator works
RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80.Xem thêm: Hướng Dẫn Mua Ví Ledger Nano S Chính Hãng Pháp Tại Tphcm, Bán Ví Lạnh Ledger Nano S Giá Rẻ
Note: During strong trends, the RSI may remain in overbought or oversold for extended periods.
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Calculation
The RSI is a fairly simple formula, but is difficult to explain without pages of examples. Refer to Wilder"s book for additional calculation information. The basic formula is:
RSI = 100 – <100 / ( 1 + (Average of Upward Price Change / Average of Downward Price Change ) ) >
Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you"re most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.