eRSI) is a trading indicator in the technical analysis of financial markets. It is intended to indicate the current and historical strength or weakness of a market based on the closing prices of completed trading periods. It assumes that prices close higher in strong market periods, and lower in weaker periods and computes this as a ratio of the number of incrementally higher closes to the incrementally lower closes.
The Relative Strength Index was developed by J. Welles Wilder[1] and published in a 1978 book, New Concepts in Technical Trading Systems, and in Commodities magazine (now Futures magazine) in the June 1978 issue.
The RSI method may be classified as a momentum oscillator measuring the velocity and magnitude of directional price movements. Momentum is the rate of the rise or fall in price.
Custom Search
Saturday 27 February 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment