Relative strength index


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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.
References in periodicals archive ?
They can also chart more than 30 popular Technical Indicators including Stochastics, Relative Strength Index, Bollinger Bands, Moving Average Convergence/Divergence, Price Channels, Money Flow, On Balance Volume and Volume by Price.
The rally in the Indian currency has pushed the dollar's relative strength index, a technical indicator, below the 30 level that signals a probable rebound in the greenback.
The measure's 14-day relative strength index stayed above 70, the level that typically indicates a drop.
The 60-day relative strength index shows equities barely above fair value and while the 50-day moving average remains in support and a sideways market is the most likely scenario, according to strategists.
The FTSEurofirst 300 index was also nearing "overbought" levels, with its Relative Strength Index (RSI) - a technical momentum indicator that determines overbought and oversold conditions - having hit 68.
Welles Wilder and introduced in his 1978 book, New Concepts in Technical Trading Systems, the Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator.
Over the next few hours of trading, the rise in global equities paired with higher commodity prices may drive the GBP/JPY higher to retrace the decline from earlier this month but at the same time, as the relative strength index continues to push into overbought territory, gains are likely to be capped, and we may see the pair fall back to cover the gap from the 120 SMA at 152.
The measure's 14-day relative strength index rose to 70 on November 3, the level seen by some investors as a signal to sell.
Improved risk sentiment pushed the Relative Strength Index of U.
China Unicom ended the day technically overbought, with a relative strength index (RSI) value

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