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--- technical_indicators:relative_strength_index_rsi [2020/07/14 15:42]
betseyp [Trend ID]
+++ technical_indicators:relative_strength_index_rsi [2023/06/11 17:22]
jayanthi [Introduction]
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 ====== Relative Strength Index (RSI) ======
-===== Introduction =====
+===== What Is the Relative Strength Index (RSI)? =====
-Developed by J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. According to Wilder, RSI is considered overbought when above 70 and oversold when below 30. Signals can also be generated by looking for divergences, failure swings and centerline crossovers. RSI can also be used to identify the general trend.
+The RSI is a momentum oscillator developed by J. Welles Wilder to measure the speed and change of price movements. The RSI moves up and down or oscillates between zero and 100. When the RSI is above 70, it indicates overbought conditions. When the RSI is below 30 it indicates oversold conditions. The RSI also generates trading signals via divergences, failure swings, and centerline crossovers. It can also be used to identify the general trend.
 RSI is an extremely popular [[:technical_indicators:introduction_to_technical_indicators_and_oscillators#momentum_oscillators|momentum indicator]] that has been featured in a number of articles, interviews and books over the years. In particular, Constance Brown's book, //Technical Analysis for the Trading Professional//, features the concept of bull market and bear market ranges for RSI. Andrew Cardwell, Brown's RSI mentor, introduced positive and negative reversals for RSI and, additionally, turned the notion of divergence, literally and figuratively, on its head.