Definition
The RSI oscillates between 0 and 100 and is used to identify overbought or oversold conditions. Generally, an RSI above 70 suggests a stock may be overbought (potentially overvalued), while an RSI below 30 suggests it may be oversold (potentially undervalued).
Formula
Example
If a stock has an RSI of 75, it's considered overbought and might be due for a price correction. An RSI of 25 would suggest the opposite.
FAQ
What is Relative Strength Index (RSI)?
A momentum indicator measuring the speed and magnitude of recent price changes.
How do you calculate Relative Strength Index (RSI)?
A common formula for Relative Strength Index (RSI) is: RSI = 100 - (100 / (1 + RS))，其中 RS = 平均涨幅 / 平均跌幅
Why is Relative Strength Index (RSI) important?
Relative Strength Index (RSI) helps investors evaluate technical analysis and make more informed decisions.
Related Terms
MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator showing the relationship between two moving averages.
Moving Average
An indicator that smooths price data by calculating the average over a specific period.
Bollinger Bands
Volatility bands placed above and below a moving average.