The relative strength quality factor by Donald Jones and Tod Stromquist
ARTICLE SYNOPSIS ...The relative strength quality factor by Donald Jones and Tod Stromquist
The relative strength index (RSI), as popularized by J. Welles Wilder in his book and later by a chart
service, is possibly the most widely used technical indicator in futures trading. An oscillator, the RSI can
take values from zero to l00, with 50 being the neutral, or most expected value. As suggested by Wilder
and generally used, an RSI of 70 or more indicates an overbought (OB) market; 30 or less is oversold
(OS). Consequently, the real action, i.e., the OB/OS areas, tends to be crammed into limited regions.