Relative Strength Index (RSI) – a Vital Indicator for Huge Profits We notice in the market that the best trends sometimes hit us without us knowing. The RSI is an indicator that shows the momentum of a defined financial instrument and at the same time it explains when it reaches extreme levels to the overbought region (upside) or oversold regions (downside). At these extreme points investors are gearing up for reversal in trend. The Relative Strength Index oscillates between 0 and 100, and is able to achieve this via a formula which compares the size of recent profits for a financial instrument to the size of its recent losses that is subsequently plotted in a line graph. Continue reading →