InvestorsHub Logo
Followers 187
Posts 674725
Boards Moderated 0
Alias Born 10/14/2012

Re: None

Friday, 12/08/2017 10:46:40 PM

Friday, December 08, 2017 10:46:40 PM

Post# of 2804248
Compensated Awareness Post View Disclaimer
The RSI formula normalizes RS and turns it into an oscillator that fluctuates between zero and 100. In fact, a plot of RS looks exactly the same as a plot of RSI. The normalization step makes it easier to identify extremes because RSI is range bound. RSI is 0 when the Average Gain equals zero. Assuming a 14-period RSI, a zero RSI value means prices moved lower all 14 periods. There were no gains to measure. RSI is 100 when the Average Loss equals zero. This means prices moved higher all 14 periods. There were no losses to measure.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.