- Panels
- Working With Orders
- Trading Concepts
- Tips
- Working with Charts
-
Technical Indicators
- Acceleration/Deceleration (AC)
- Awesome Oscillator
- Aroon
- Average True Range (ATR)
- Bollinger Bands
- Bollinger Bandwidth
- Bollinger %B
- Commodity Channel Index (CCI)
- DeMarker
- Average Directional Movement Index (DMI)
- Average Directional Movement Index Rating (ADXR)
- Donchian Channel
- Elliot Oscillator
- Alligator / Gator Oscillator
- Ichimoku Kinko Hyo
- Keltner Channel
- Moving Average
- Moving Average Convergence/Divergence (MACD)
- MACD Histogram
- Momentum
- Moving Averages of Oscilliators (OsMA)
- Parabolic SAR
- Pivot Points
- QStick
- Rainbow Chart
- Rainbow Oscillator
- Relative Momentum Index (RMI)
- Price Rate of Change (ROC)
- Relative Strength Index (RSI)
- Relative Vigor Index (RVI)
- Stochastics
- Trend Overlay
- Tom Demark's Range Projections
- Williams' Percent Range (%R)
- ZigZag
Relative Strength Index (RSI) is a very popular and widely accepted momentum oscillator that could help us identify overbought/oversold conditions. It is very useful in volatile foreign exchange trading world. The 70% and 30% levels are considered warning signals, with movements over 70 are considered overbought and movements under 30 are considered oversold. The trading signals originate when divergence occurs between the RSI and the actual price followed by a double top or a double bottom formation. In the double top formation, the first top is formed at or above the 70% level and a lower second top at or below the 70% level. The signal to sell is triggered when RSI dips through the first trough. The double bottom formation takes place when a rising trough above the 30% level follows the first trough, which is at or below the 30% level. The signal to buy is triggered when the RSI breaks through the first top. Author Cornelius Luca points out that some analysts prefer to use only numerical values. They consider values above 90% as the sell signal and values below 10% reflect a buy signal. 
Parameters
|