| JUL 1993
RSI Variations Barbara Star, Ph.D.
RSI Variations Barbara Star, Ph.D. Sometimes we forget that indicators long considered standard contain parameters that can be adjusted to become more responsive to various trading needs. Here, Barbara Star presents four variations of the classic relative strength index: one that provides readings on only the most recent data; one that incorporates volume; one that substitutes the average price for the close; and one that combines two days of price action. This month, she uses Greg Morris's article, ""Facelift for an old favorite,"" as a basis for this tutorial. Most charting software contains the relative strength index (RSI) indicator that J. Welles Wilder originally developed in the late 1970s . The RSI (not to be confused with relative strength, which measures the relationship between a stock and the overall market or industry group) compares the strength of a stock or commodity price in relation to itself over a certain period of time (most commonly 14 days). Traders usually use the RSI as an oversold/overbought momentum indicator that fluctuates within a scale of zero to 100.
by Technical Analysis, Inc.
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