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Relative Strength Index RSI


Relative Strength Index forex cashback easy cashbackforex one of the trad 100%cashbackforexg methods proposed by the American author Welles & bull; Sir WilderJr. in his book NewConceptsinTechnicalTradingSystems in 1978, its full English name is RelativeStrenthIndex, the Chinese name for the relative strength indicator RSI basic principle is that in a normal currency market, long cashbackforexpip short buyers and sellers of the force must be balanced, the exchange rate can be stable and the actual use of RSI is for a fixed period, the average of the average of the total range of the exchange rate rise in proportion to its principle is the assumption that the closing price is the final force of buyers and sellers Therefore, RSI can also be rewritten as RSI = 100AUn/(AUn+ADn) formula, RS for the ratio of buyers force to sellers force, that is, the concept of the relative strength of the two sides and RSI is the relative strength of the value defined in the range of 0 to 100, in order to facilitate the use of reference and multi-day RSI (i.e., the n value is larger ) signal forexcashbackeasy be more informative RSI is a fairly reliable kinetic indicator first, consider the extreme value of the situation cashback forex the disk trend appears to be a full continuous up situation, RS will tend to infinity (there is no down, only up, divided by the emergence of infinity), then RSI will tend to 100 Therefore, when the market appears to be a full long, will lead to RSI tend to its upper limit of 100 On the other hand, when the disk trend appears to be a full On the other hand, when there is a full-scale downtrend, RS=0. Therefore, when there is a big short, RSI will converge to its lower limit of 0. But in general, the market always fluctuates between the above two extremes, therefore, RSI value will be bounded between 0 and 100, the larger the value, the stronger the buyers power. Similarly, when the RSI is low to a certain level, it usually represents an irrational overselling phenomenon in the market, indicating that the bottom is near. However, the overbought and oversold values do not represent buying and selling signals, but only indicate that the trend has a greater chance of turning back.