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    Relative Strength Index (RSI)
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      Relative Strength Index (RSI)

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        Article summary

        Relative Strength Index (RSI) is a momentum oscillator that helps identify the market strength as well as anticipate trend reversals. The index is calculated as a ratio of higher closes to lower closes where the closes are the averages of absolute values of price changes. RSI values are represented on the scale from 0 to +100 with overbought/oversold levels. An asset is considered overbought when the reading greater than 70 and oversold when the readings are lower than 30.

        RSI = 100 - (100 / 1 + RS)
        RS = Average Gain / Average Loss


        Relative Strength IndexRelative Strength Index 


        INPUTS

        InputDescription
        LengthThe number of bars used to calculate RSI
        OverboughtThe price to fix the overbought level at
        OversoldThe price to fix the oversold level at
        Price
        The following data sources are available for the price:
        • Open. The Open Price of every bar for the specified period.
        • High. The High Price of every bar for the specified period. 
        • Low. The Low Price of every bar for the specified period.
        • Close. The Close Price of every bar for the specified period. 
        • Median. The Median Price of every bar for the specified period - (High + Low) / 2.
        • Typical. The sum of High, Low, and Close prices divided by 3 for the specified period- (High + Low + Close) / 3.
        • OHLC average. The arithmetical mean of High, Low, Open, and Close prices for the specified period - (Open + High + Low + Close) / 4.
        • Volume. The Close Price of every bar + average volume of an asset for the specified period.
        Average
        The following Moving Average types are available for calculations:
        • Simple. Simple Moving Average (SMA) is used in calculation.
        • Wilders. Wilders Smoothing is used in calculation.
        • Weighted. Weighted Moving Average (WMA) is used in calculation.
        • Exponential. Exponential Moving Average (EMA) is used in calculation.

        PLOTS

        The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

        PlotDescription
        RSIThe Relative Strength Index plot
        OverBoughtThe overbought level
        OverSoldThe oversold level
        Color

        Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

        Palette

        To create a custom color:

        1. Clickto open the color picker
        2. By using the slider at the bottom, adjust the main color
        3. Then, set a shade for the main color on the palette

        The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

        Weight
        Change the value (in px) to adjust the thickness of the plot.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The plot is displayed as triangles above candles on the chart.
        • Color candle. The candles on candle-type charts are highlighted with specified colors.

        OVERLAYING

        Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

        Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE
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