Indicator - RSI
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Definition RSI
RSI(on n period)=100-100/(1+p) with p=(average of n days up/average of n days down).
Interpretation RSI
RSI is an overbought / oversold indicator. Buy signals occur generally when crossing the 30 level and sell signals when crossing the 70 level.
RSI is always scaled between 0 and 100.
It also gives good divergence signals.
A bullish divergence occurs when the stock price makes new lows while the RSI fails to make new lows.
A bearish divergence occurs when the stock price makes new highs while the RSI fails to make new highs.
