The Relative Strength Index - RSI - is a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions.
| Relative Strength Index - RSI Definition | The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, New Concepts in Technical Trading Systems. | Read More » | Related to "Relative Strength Index - RSI Definition" | | Divergence Definition | Divergence is when the price of an asset and a technical indicator move in opposite directions. Divergence is a warning sign that the price trend is weakening, and in some case may result in price reversals. | Read More » | | Trade Signal | A trade signal is a trigger, based on technical indicators or a mathematical algorithm, that indicates it is a good time to buy or sell a security. | Read More » | | Overvalued | Overvalued stocks are defined as equities with a current price that experts expect to drop because its earnings outlook or price-earnings ratio do not justify it. | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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