RSI

Creator: J. Welles Wilder

RSI Period : 14

Average Period: 9

You will see two lines plotted below the chart when you plot the RSI indicator.

1 – The green line represents the RSI indicator

2 – The red line represents the average line of the RSI

The relative strength index (RSI) is one of the most popular momentum indicators.

According to the pattern of closing prices in the data, it calculates the strength of prices over the past 14 periods.

14-period is a popular parameter suggested by Wilder, but you can experiment with different parameters.

RSI is considered bullish when it is above 50 and above its average line.

The RSI indicates bearishness when it falls below 50 and below its average line.

The RSI above 70 is considered to be an overbought condition, while the RSI below 30 is considered to be an oversold condition. However, there is much more to be learned about RSI.

To learn more about RSI, please click here.

The indicator can be found in the Indicator Digger section of TradePoint & RZone. There are ready conditions in tabular format that can be used to pick stocks based on the condition of this indicator on any charting technique.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.