Relative Strength Indicator
The Relative Strength Indicator function was developed by J. Welles Wilder. It compares the average of up closes against the average of down closes over a specified number of time periods. Resulting values range from 0 to 100. Applications of RSI include identifying overbought or oversold situations. For example, if the RSI line stalls at a level above 70, this may indicate the stock is overbought. Or, if the RSI line drops to a level below 30, this may indicate the stock is oversold and becoming undervalued.
The Relative Strength Indicator function requires the following input series:
- d0 - Input data values - The set of data values for which the Relative Strength Indicator is calculated, usually the daily close price of a stock
The Relative Strength Indicator function has the following parameter:
- s0 - Period - The number of time periods to use in the calculation.
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
The Relative Strength Indicator function generates the following output:
- Relative Strength Indicator - The Relative Strength Indicator result set, which consists of values ranging between 0 and 100.