Relative Strength Index (RSI)
Definition
A momentum oscillator measuring the speed and magnitude of recent price changes on a scale of 0–100. Readings above suggest overbought conditions; below suggest oversold.
Formula / Rules
$ \text{RSI} = - \frac{100}{1 + \text{RS}} $ (RS = Average Gain / Average Loss)
Example
RSI at on a stock may signal a potential pullback. MACD (Moving Average Convergence Divergence) Category: Technical Analysis Definition: A trend-following momentum indicator showing the relationship between two moving averages of a security’s pri
Frequently Asked Question
What is Relative Strength Index (RSI) in trading?
A momentum oscillator measuring the speed and magnitude of recent price changes on a scale of 0–100. Readings above suggest overbought conditions; below suggest oversold.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.