Managing Personal finance: Apps that can help you plan your month
Struggling with finance management, learn more about apps that can help plan your finances here
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How to Trade Using RSI Indicator
How to Trade Using RSI Indicator Many trading platforms have over 100 momentum indicators. RSI is among the best-approved indicators. It was developed by J. Welles Wilder in 978. Relative Index Indicator (RSI) is a momentum indicator used to analyze the extent of the current price changes to assess the oversold/overbought conditions in the market. RSI is a ratio that is expressed in a range of between 0-100. The major disadvantage of the RSI indicator is that it can give inaccurate signals. It can give an incorrect impression of the market due to unexpected and rapid price changes. To provide accurate signals, RSI should be used along with other technical indicators. Many trading platforms can automatically calculate the RSI To calculate RSI, you use the formula below: RSI=100- (100/ (1+A/B) Where: A is the mean of the price increase change B is the mean of the price decrease change RSI Setting The default RSI value is 14 periods. This means that the indi...