Relative Strength Index financial definition of Relative Strength Index. Relative Strength Index finance term by the Free Online Dictionary.

Relative strength index

Used in technical analysis, it is a measure of the number of days a stock increases in value relative to the number of days it decreases in value. The rule of thumb is that values over 70 suggest overvaluation and hence selling where as values around 30 suggest undervaluation or buying. Of course, this indicator completely ignores all fundamental information about the firm's prospects and, hence, is problematic to use as a stand-alone indicator for an investment strategy.

Relative Strength Index

A measure of the performance of a stock relative to its industry or the performance of an industry relative to the market as a whole. A stock (or industry) outperforming its industry (or market) for a given period of time has a relative strength index value above 1; this is seen as a bullish sign for that stock (or industry). On the other hand, a stock (or industry) underperforming its industry (or market) for a given period of time has a relative strength index value under 1; this is seen as a bearish sign.

Relative Strength Index (RSI)

What Does Relative Strength Index (RSI) Mean?

A technical momentum indicator that compares the magnitude of recent gains to that of recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated by using this formula:

As can be seen in the following chart, the RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches a level of 70, meaning that the asset may be getting overvalued and is a good candidate for a pullback. Similarly, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore is likely to become undervalued.

Investopedia explains Relative Strength Index (RSI)

A trader using RSI should be aware that large surges and drops in the price of an asset will affect the RSI by creating false buy and sell signals. The RSI is best used as a valuable complement to other stock-picking tools.

Related Terms:
• Bear Market
• Downtrend
• Momentum
• Oversold
• Trend Analysis

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Dynamic Momentum Index Market Risk Premium Moving Average Convergence Divergence Overbought Oversold RPPP RSI	The Nikkei may be poised for a rebound in the near-term with the relative strength index showing it has been over-sold. Nikkei falters, first 4 week losing streak in a year by Financial Mirror (Cyprus) The Relative Strength Index (RSI) is a popular momentum oscillator. The Relative Strength Index RSI by Sylvain Vervoort / Consumer news, advice, product reviews community Moving toward the lower area of the chart, notice that the Aroon (14) trend intensity index is solidly biased toward the bullish side of its range (when the blue line is above the red line and both lines are at opposing extremes, a powerful uptrend is in motion) even as the Relative Strength index (RSI)(14) is also in a powerful uptrend. Gold mining stocks: major uptrend in progress by Mark Brown / Stockhouse	REIT Rejection Rekening Reklame Relacao custo-beneficio Relacao de endividamento Relacao do servico da divida Relacion de conversion Relacion deuda-capital Relacion ganancia-precio Relacion importaciones/consumo Relacion precio-flujo de fondos Relacion precio-ganancia Relacion precio-valor libro Relacion precio-ventas related party transactions Related-Party Transaction relation back doctrine Relational Banking Relationship Trading Relative Form of Purchasing Power Parity Relative PE Relative Purchasing Power Parity Relative Return Relative Strength Relative Strength Index Relative Strength Indicator Relative Value Relative yield Relative Yield Spread Relatorio Relatorio anual Relazione certificata di bilancio release release clause release of lien Release on Recognizance Relevant Costs Releve de compte reliction Relief Relief Printing Relief Rally Religious Land Use and Institutionalized Persons Act of 2000 relinquished property Reliquify Reload Option Reload Stock Option Reloading relocation clause relocation exception	Relative Shoot Dry Weight Relative Side-Lobe Level Relative Solar Heat Gain Relative Sound Pressure Level Relative Source Time Function relative specificity Relative Spectral Response Relative Spectral Response Function Relative Spectral Technique relative square search relative stability test Relative standard deviation Relative Standard Deviation for Reproducibility Relative Standard Error Relative Standard Error of the Mean Relative Standardabweichung Relative Standardized Mortality Ratio Relative state Relative state formulation Relative state interpretation Relative State of Charge Relative static permittivity Relative static permittivity relative sterility Relative strength Relative strength Relative Strength Index Relative Strength Indexes relative strength indicator relative strength indicator Relative Strength Indicators Relative Strength Indices Relative Strength Levy Relative Substrate Affinity Index relative sunspot number Relative Synonymous Codon Usage Relative System Performance relative tachycardia Relative Temperature Index relative temperature scale Relative term Relative Thermal Resistance to Mixing Relative Threat Number relative time Relative Time Clock Relative Time Command Sequence Relative Time Interval Error Relative Time of Arrival Relative Time Processor Relative Time Sequence relative to relative to relative to relative to the manner of proceeding

Mentioned in

References in periodicals archive

Financial browser

Full browser

Dynamic Momentum Index
Market Risk Premium
Moving Average Convergence Divergence
Overbought
Oversold
RPPP
RSI

The Nikkei may be poised for a rebound in the near-term with the relative strength index showing it has been over-sold.

Nikkei falters, first 4 week losing streak in a year by Financial Mirror (Cyprus)

The Relative Strength Index (RSI) is a popular momentum oscillator.

The Relative Strength Index RSI by Sylvain Vervoort / Consumer news, advice, product reviews community

Moving toward the lower area of the chart, notice that the Aroon (14) trend intensity index is solidly biased toward the bullish side of its range (when the blue line is above the red line and both lines are at opposing extremes, a powerful uptrend is in motion) even as the Relative Strength index (RSI)(14) is also in a powerful uptrend.

Gold mining stocks: major uptrend in progress by Mark Brown / Stockhouse

Relacao custo-beneficio

Relacao de endividamento

Relacao do servico da divida

Relacion de conversion

Relacion deuda-capital

Relacion ganancia-precio

Relacion importaciones/consumo