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Novice Traders' Notebook | AUG 1999
Momentum And Relative Strength Index by Stuart Evens
Momentum And Relative Strength Index Last month, we examined the theory of price momentum. This time, we’ll look at two common and popular indicators based on this theory, and how they can be used to enter and exit a market. ""Momentum oscillator” is a generic term used to refer to many different indicators, two of which are the relative strength index (RSI) and momentum indicators. Since J. Welles Wilder presented price momentum and the RSI in his classic New Concepts In Trading Systems, both indicators have become popular technical tools, and a discussion of each can be found in most current works on technical analysis. Both indicators can be used to enter and exit the market.
by Stuart Evens
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