RSI Calculator
Use this calculator to determine the Relative Strength Index (RSI) for a given set of data, helping you make informed trading decisions.
Results
Data Source and Methodology
All calculations are based on the standard RSI formula and financial data guidelines. Refer to Investopedia for more information. All calculations are strictly based on the data and formulas provided by this source.
The Formula Explained
Glossary of Terms
- Average Gain: The average of all gains over a specified period.
- Average Loss: The average of all losses over the same period.
- RSI: A momentum oscillator that measures the speed and change of price movements.
How It Works: A Step-by-Step Example
Suppose you have a period of 14 days with an average gain of 1.5 and an average loss of 0.5. The RSI would be calculated as:
RSI = 100 - (100 / (1 + 1.5/0.5)) = 75
Frequently Asked Questions (FAQ)
What is the RSI?
RSI stands for Relative Strength Index, a tool used in trading to measure the speed and change of price movements.
How is RSI used in trading?
Traders use RSI to identify potential buy or sell signals based on overbought or oversold conditions.
What is considered an overbought RSI level?
An RSI above 70 is typically considered overbought, indicating a possible reversal.
What is considered an oversold RSI level?
An RSI below 30 is typically considered oversold, suggesting a potential upward reversal.
How often should RSI be calculated?
RSI is often calculated on a daily basis, but it can be adjusted based on the trader's strategy.