Computerized Investing > October 21, 2017

Classic Technical Indicators: Inside the Numbers of RSI

| | | COMMENTS (1) | A A   Reset

by Raymond Rondeau

AAII

This second part of our series on the relative strength index (RSI) is for the more advanced or inquisitive investor who wants to understand in greater depth some of the intricacies of RSI and its calculations. I discuss how calculating RSI has changed over time, some of the indicator’s oddities and why its values can differ slightly from platform to platform. Additionally, I cover a few of the “customized” variations of RSI, which attempt to contour or compensate for certain attributes.

For part one of the series, “Classic Technical Indicators: The Basics of the RSI,” click here.

Before progressing, it is critical to note that the calculations in the following tables and their respective values are theoretical and that they have been contoured for illustrative purposes only. Furthermore, the associated calculations and their output values have been modified in various manners and as appropriate to each section for the sole purpose of illustrating each covered concept.

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Log in
Already registered with AAII? Login to read the rest of this article.

Register for FREE
to read this article and receive access to future AAII.com articles.
  

 


Discussion

Scott Juds from WA posted 7 months ago:

Raymond,
These are all very important nuances to be aware of that are always brushed over in other materials... particularly the issue of the data being dividend adjusted or not. Your explanations were detailed and informative.

Nice job!


You need to log in as a registered AAII user before commenting.
Create an account

Log In