Saturday, May 28, 2011

RSI momentum indicator

RSI momentum indicator

The Relative Strength Index (RSI) can provide an early warning of the possibility to buy or sell. overview
1 - RSI is a momentum indicator, or oscillator, which measures the relative strength of the internal market (not against another market or index).
2 - As with all oscillators, RSI can provide early warning signals but should be used in combination with other indicators.
3 - The differences are the most important signal provided by RSI.
The term "Relative Strength" is a bit misleading and often causes confusion. Relative strength generally means a comparison between two different markets or indices. RSI, on the other hand, refers to the inner strength of a single market.

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