RSI indicator
RSI indicators belong to the group called oscillators and are very important to read graphs. The RSI is the relative strength indicator and use it to know the relative strength of the trend of an asset by comparing the closing prices of previous periods.
How do you calculate the RSI?
How ever I say, you do not have to calculate it, a program will do it for you, especially one that trace the indicator in the graphs with only introduce the variables. These programas are very importat to read graphs. But I explain roughly where does the value of the RSI
RSI = 100100 x 1/1 + RS
Being RS relative strength, which is the result of dividing the exponential moving average of the closing price difference over the period studied, match moving average exponent of the difference of lower closing prices.
Interpretation of RSI
In read graphs the RSI ranges from 0 to 100
1) if the value of the RSI are between 70 and 100 is assumed that the value is coming up and can cause a shift downward trend that must be confirmed by another indicator.
2) if the value of the RSI are between 30 and 70 is in the middle, and lateral movement is not a good time to invest in binary.
3) if the value is between 0 and 30 is reaching minimum levels and may be a change of trend. We will wait for confirmation from another indicator to buy up options.
