Dec 29, 2025 · Learn what the relative strength index (RSI) is, how it works, and how to read overbought and oversold signals, along with the formula behind this popular indicator.

Guide to What is Relative Strength Index & its meaning. We explain its formula, calculation, example, and interpretation.

Averages are now calculated from sequences of such U and D, using an n -period smoothed or modified moving average (SMMA or MMA), which is the exponentially smoothed moving average with α = 1 / …

Oct 29, 2025 · How is Relative Strength Index (RSI) Calculated? The RSI is calculated using a straightforward formula: RSI = 100 – [100 / (1 + RS)] Where: The default period used is 14 days, …

100 RSI = 100 - -------- 1 + RS RS = Average Gain / Average Loss. There are three basic components in the RSI— RS, Average Gain, and Average Loss. This RSI calculation is based on 14 periods, the …

The RSI indicator can help you know when to buy or sell a stock. This article will cover what the relative strength index is, the RSI formula, and how to use this incredible RSI calculator.

To fully understand how the calculation is accomplished, traders and analysts should read Wilder’s own explanation. It is presented in his 1978 book, New Concepts in Technical Trading Systems. …

Mar 13, 2024 · The Relative Strength Index is the way that investors can tell the momentum of a stock. Learn what RSI means and how to calculate it.

Now as you have the average up move (AvgU) and average down move (AvgD) in the last 14 price bars, the next step is to calculate Relative Strength, which is defined as the ratio of average up moves and …

The average gains and losses are then used to calculate the Relative Strength of the assets, which is plugged into the formula to calculate the RSI. J. Welles Wilder Jr. created the Relative Strength …