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The Relative Strength Index (RSI) Indicator
  

Relative Strength Index (RSI) is one of the most popular technical indicators. It is an oscillator that ranges between a scale of 0 – 100.

Calculation:

Where:

  • NetChgAvg = NetChgAvg is the Average change of the Closing Price in n days (i.e. Closing Price(0) - Closing Price(n), all divided by n). NetChgAvg0 is the value of NetChgAvg today. NetChgAvg1 the value of NetChgAvg yesterday.
  • ToChgAvg = ToChgAvg is the average of the absolute change in the Closing Price between each two consecutive days in n days. ToChgAvg0 is the value of ToChgAvg today. ToChgAvg1 is the value of ToChgAvg yesterday.
  • Closing Price0 = Closing Price today
  • Closing Price1 = Closing Price yesterday
  • ABS = Absolute

To see an Excel example of an RSI calculation click here: Attach:RSI.xls

  • note - RSI in the Excel is calculated slightly different than Wilder's RSI formula as described above. The Excel calculation is the way most systems today calculate RSI.


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