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Wilder's Relative Strength Index (RSI)

RSI (The Wilder's Relative Strength Index) is a rate of change oscillator. It compares the price of a stock to itself and does not compare the relative performance of one stock to another. J. Welles Wilder, Junior created it. This indicator was used to spot negative and positive discrepancies with price. It may also be used to define if a stock or index has reached an oversold or overbought condition.

Wilder's RSI

Values near the 30% oversold. Vice versa, a reading of 70% or higher is usually an overbought position. First, it is important to determine whether a definable trend exists, if used as an oversold/overbought indicator.

After the direction of a primary trend has been successfully identified, use Wilder's RSI to trade precisely according to the trend. The better way to determine it is to use another technical indicator such as price moving averages or trend lines.

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