Volume-weighted RSI: money flow by Gene Quong and Avrum Soudack
ARTICLE SYNOPSIS ...Volume-weighted RSI: money flow
by Gene Quong and Avrum Soudack
The Relative Strength Index (RSI) by J. Welles Wilder Jr. is one of the most popular technical
indicators. RSI is included in most of the technical analysis software available today. Anyone conversant
with the algorithm used to calculate RSI knows that only the closing price is used. We believe RSI can be
improved by using volume to weight the index.
Classic market tops are characterized by an increase in volume. Technical indicators which rely only on
price changes do not reflect the whole picture. Volume can vary by an order o...