The Relative Strength Index or RSI is momentum oscillators that determine the velocity and change of price movements. The Rsi Indicator oscillates between O (zero) and 100. By rule, the RSI is considered overbought when it is higher than 70 and oversold when below 30. Signals can be built by looking for failure swings and divergences. The indicator can also be used to recognize the general trend. The trader who is following RSI formula may be aware that there are large ups and downs in the price of an asset which will affect the index by creating false buy or sell signals.
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