Relative Strength Indicator

The Relative Strength Indicator is in effect a measure of short term Momentum, showing whether the price line is speeding up or slowing down. It is a percentage calculated by comparing the average of the falls with the average of the rises within the selected period. When the RSI is below 25% the item is oversold. If the RSI is above 75%, it is overbought.

To apply a Relative Strength Indicator to a graph:

• The STI dialog box will be displayed (refer to Momentum Indicator for diagram).
  
  
• Select the required period by scrolling across with the arrows.
  
  
• Click on OK and the graph will re-draw with the RSI line in a separate graph below the price line graph.