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.
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