eMark,
Relative Strength Index (RSI) is a momentum indicator which measures a security's price relative to itself and its past performance, thereby indicating its internal strength.
RSI quantifies price momentum. It depends solely on the changes in closing prices. RSI is less affected by sharp rises or drops in a security's price performance and, therefore, may give a better velocity reading than other indicators.
RSI is calculated by taking the average of the closes of the up bars (the up frequency intervals) and dividing them by the average of the closes of the down bars. The time frame specified determines the volatility of the indicator. For instance, a 9-day time period under study will be more volatile than a 21-day time span.
The RSI ranges between 0 and 100. RSI is said to indicate an "overbought" condition when it is above 80 and an "oversold" condition when it is below 20. However, the buy and sell level varies depending on the amount of bars used in the calculation. A shorter span of bars will result in a more volatile indicator which reaches further extremes. A longer amount of bars used in the calculation results in a less volatile reading which reaches extremes far less often.
I would expect the stock to drift back to 10.5 cents in a few weeks hopefully so that people can top up again. Good luck with it.
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- its a breakout not a dump
FDL
flinders diamonds limited
eMark, Relative Strength Index (RSI) is a momentum indicator...
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