Relative Strength Index (RSI)
The relative strength index (RSI) is a price momentum oscillator indicator. RSI is one of the most popular technical indicators used by technical analysts to measure the percentage of price change to determine the overbought or oversold positions of an asset. RSI assists traders with the bullish and bearish price momentum, used for entry and exit positions for the asset.
How To Read RSI?
The default value of RSI is set to be at the 70 - 30 benchmark. An RSI reading of 70 indicates an asset is overbought while 30 indicates the asset is oversold.
How to Use RSI in trading?
Analysts often use RSI to determine the overbought/oversold position of the underlying asset. If the RSI reading is above 70, it indicates the asset is “overbought”. Hence a call to either sell or open a short position is suggested & similarly if the RSI reading is below 30 “oversold” a long/buy position is recommended.
How to load RSI on MXC?
Commonly used timeframes for RSI indicator is 1hour or 30min, however, it can be used on any timeframe as desired.
Please watch the video below to learn how to load RSI on your charts in the MXC trading platform.