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Relative Strength Index (RSI) in Forex trading

The Relative Strength Index (RSI) is one of the popular Technical Indicators in oscillator charting methods. RSI is normally used to compare the currency strength and to predict currency price movements.

Mathematics calculations behind RSI charting: RSI= 100 - 100/(1+RS) where RS = sum of positive closing prices divide by sum of negative closing prices. RSI helps traders to predict price movements and to identify market turning points. Rising in RSI will normally followed by a rise in currency price; vise versa, downtrend RSI indicates that the currency price is more likely dropping.

Related links and readings

Wikipedia: RSI
General knowledge for MACD learning. Brief intro, calculations, interpretation, and list of other references.
http://en.wikipedia.org/wiki/RSI

Investopedia: RSI
Detail studies of MACD from the professional with lots of visual aids, recommended reading.
http://www.investopedia.com/RSI

Get Forex trading signal with FX Universal
Forex online trading tool, provides trading signals and real time Forex price changes. Highly recommended.
http://www.fxuniversal.com

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