Forex rsi definition
RSI is a momentum oscillator indicator which means it tracks definition recent rate of rise or fall in the definition price movement based on the recent close prices. It is calculated using the rsi formula:. The default time frame to measure RSI is 14 periods. However the same can be lowered or raised to increase or decrease sensitivity. RSI varies between 0 to and the stock is considered overbought when RSI is above 70 or oversold when RSI is below RSI is used to identify oversold and overbought stocks, direction of the trend and thereby trend reversals.
Different researchers have come out with various ways to interpret RSI. Some of the popular ones forex as below:. Rsi are found to only lead to brief reversals and therefore to be used with forex. RSI can give wrong signals in very strong trends. So, RSI is definition used along with other indicators.
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