RSI is a diverse momentum based oscillator which is used to measure the speed & velocity as well as the magnitude of directional price movements. Essentially RSI, when graphed, provides a visual mean to monitor both the current, as well as historical, strength and weakness of a particular asset.
The strength or weakness is based on closing prices over the duration of a specified trading period creating a reliable metric of price and momentum changes.
RSI has proven to be a viable indicator of price movements.
Barry Norman The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.