![Welles wilder rsi.pdf](https://kumkoniak.com/120.png)
![welles wilder rsi.pdf welles wilder rsi.pdf](http://strategy4forex.com/wp-content/uploads/2010/02/fibonacci_rsi_4.jpg)
The higher the RSI value, the more significant the trend can be viewed. As far as the interpretation of these and other possible values is concerned, this is comparatively simple and easy to understand even for beginners. A value of 0, on the other hand, is given on the condition that, without exception, there have been falling prices, which also increased in strength. The development is, therefore characterized by ever-increasing courses.
![welles wilder rsi.pdf welles wilder rsi.pdf](http://baostock.com/baostock/images/b/b3/CCI.png)
The value 100 results, for example, on the assumption that during the observed period, all closing prices are higher than the prices that were available in the respective previously considered period. To draw conclusions from the development of the RSI and to carry out the most successful forex oscillator trading, the resulting values must, of course, be interpreted correctly. Of course, this refers to a selected period. You take the sum of closing price differences that exist in the course of an upward movement and also divide this by the sum of the closing price differences that exist in the area of the downward movement. One advantage of this oscillator is that it is less susceptible to fluctuations compared to somewhat simpler momentum indicators.Ĭoncerning the structuring of the RSI, the calculation is carried out by forming a quotient from two moving averages. The RSI indicates whether a market is currently oversold or overbought. In this context, the relative strength has the task of measuring the momentum of a movement in the market. Occasionally, there is information in the literature according to which values greater than 80 in bull markets, and values below 20 in bear markets should be used as extreme zones. The oscillator ranges between 0 and 100, values over 70 are considered overbought, and values under 30 are oversold.
![welles wilder rsi.pdf welles wilder rsi.pdf](https://www.forex.academy/wp-content/uploads/2020/10/Screenshot_13.jpg)
It is an oscillator that shows overbought and oversold market situations and, through divergences, provides further indications of possible upcoming trend change. The Relative Strength Index was developed by Welles Wilder and published in 1978 in “New Concepts in Technical Trading Systems”.
![Welles wilder rsi.pdf](https://kumkoniak.com/120.png)