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How To Use The Relative Strength Index (RSI)

The Relative Strength Index (RSI) is an oscillator tool used in technical analysis.

One of the two major problems in constructing a momentum line (using price differences) is the erratic movement often caused by sharp changes in the values being dropped off.  A sharp advance or a decline 10 days ago (in the case of a 10 day momentum line) can cause sudden shifts in the momentum line even if the current prices show little change