Monday, June 8, 2009
RSI Relative Strength Index
As quite a powerful indicator, the Relative Strength Index, or simply the RSI, measures the price momentum of the current trend of a currency pair. This indicator, instead of highlighting an existing trend, gauges the strength of the momentum of the current trend. Which means, whether the trend is still powerful or not.
The middle line is 50. These situations exist:
1. Uptrend.
If the RSI is above 50, the trend is still strong. Else, the trend will be ending soon or has ended.
2. Downtrend
If the RSI is below 50, the trend is still strong. Else, the trend will be ending soon or has ended.
Pretty easy but powerful.
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