What Is RSI?
What Is RSI in Finance?
In finance, RSI stands for Relative Strength Index, an indicator used in technical analysis. RSI measures the relative strength of positive and negative changes in security prices. If the upside moves are far greater than the downside moves, RSI is at high levels. Some people say that is is overbought – the buying has been too much and gone too far. Conversely, when negative moves are bigger, RSI is close to zero and some poeple call it being oversold. The RSI can reach values from 0 to 100.
For more information on what RSI is and the logic behind it, see Relative Strength Index (RSI).
RSI Formula and Calculation
The formula for calculating RSI is: RSI = 100 – 100 / ( 1 + RS )
RS is the Relative Strength of up and down price changes. See detailed explanation of RSI calculation.
What Is RSI outside Finance?
Outside the world of finance and technical analysis, RSI can also mean: