Blog : RSI Indicator
RSI
The Relative Strength Index (RSI) is a momentum-based oscillator that measures the speed (velocity) and change (magnitude) of directional price movements. It provides a visual means to monitor both the current and historical strength or weakness of a market, based on closing prices over a specified trading period. RSI is a reliable metric for tracking price and momentum changes and is widely used in trading cash-settled instruments and leveraged financial products.
| RSI Inputs | |||
|---|---|---|---|
| Trend Following | Mean Reversion | ||
| Period | 14 | Period | 14 |
| Source | close | Source | close |
| Middle Level | 50 | Oversold Level | 30 |
| Overbought Level | 70 | ||
| RSI | Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
|---|---|---|---|---|
| Trend Following | RSI crossover Middle Level | RSI crossunder Middle Level | RSI crossunder Middle Level | RSI crossover Middle Level |
| Mean Reversion | RSI crossunder Oversold Level | RSI crossover Overbought Level | RSI crossover Overbought Level | RSI crossunder Oversold Level |
| RSI | Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
| Trend Following | RSI > Middle Level | RSI < Middle Level | RSI < Middle Level | RSI > Middle Level |
| Mean Reversion | RSI < Oversold Level | RSI > Overbought Level | RSI > Overbought Level | RSI < Oversold Level |