Relative Strength Index (RSI) – Stock Market Indicator
The Relative Strength Index (RSI) is a momentum oscillator used in technical analysis to measure the speed and change of price movements. It helps traders identify overbought and oversold conditions in a stock, commodity, or other asset.
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Key Features of RSI
1. Formula RSI is calculated using the following formula:
RSI = 100 - \left( \frac{100}{1 + RS} \right)
RS (Relative Strength) = Average gain over a period / Average loss over the same period