RSI (Relative Strength Index)
The Relative Strength Index, developed by J. Welles Wilder, determines market movement measured as the rate of change. It attempts to correct perceived shortcomings of the standard Momentum study.
To add RSI to any price series, simply make a chart of the desired series, click the "Indicator" button on the toolbar, and then select "RSI."
Alternately, pull down the Chart menu, click "Study Toolbar" and then select "RSI."
The only user parameter for this study is the Period length. The default response of 14 is most commonly used. Here is an example:
Since, in our example, the RSI is superimposed on the bar chart, its scale is on the left. The price scale is always on the right.