Relative Strength Index Solution

STEP 0: Pre-Calculation Summary
Formula Used
Relative Strength Index = 100-(100/(1+(Average Gain during Up Period/Average Loss during Down Period)))
RSI = 100-(100/(1+(AG/AL)))
This formula uses 3 Variables
Variables Used
Relative Strength Index - Relative Strength Index is a momentum oscillator that measures the speed and change of price movements, indicating overbought or oversold conditions of a security.
Average Gain during Up Period - Average Gain during Up Period is the average of price increases in a financial instrument over a specified period.
Average Loss during Down Period - Average Loss during Down Period is the average of price decreases in a financial instrument over a specified period.
STEP 1: Convert Input(s) to Base Unit
Average Gain during Up Period: 60 --> No Conversion Required
Average Loss during Down Period: 20 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
RSI = 100-(100/(1+(AG/AL))) --> 100-(100/(1+(60/20)))
Evaluating ... ...
RSI = 75
STEP 3: Convert Result to Output's Unit
75 --> No Conversion Required
FINAL ANSWER
75 <-- Relative Strength Index
(Calculation completed in 00.004 seconds)

Credits

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Created by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
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International Fisher Effect using Interest Rates
​ Go Change in Exchange Rate = ((Domestic Interest Rate-Foreign Interest Rate)/(1+Foreign Interest Rate))
Relative Strength Index
​ Go Relative Strength Index = 100-(100/(1+(Average Gain during Up Period/Average Loss during Down Period)))
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Relative Strength Index Formula

Relative Strength Index = 100-(100/(1+(Average Gain during Up Period/Average Loss during Down Period)))
RSI = 100-(100/(1+(AG/AL)))

What is Relative Strength Index ?

The Relative Strength Index (RSI) is a widely used technical indicator that helps traders gauge the strength and potential reversals in price movements of financial assets. It measures the magnitude of recent price changes to determine overbought or oversold conditions, with readings above 70 suggesting potential overbought levels and readings below 30 indicating potential oversold levels. Traders often use the RSI to identify entry and exit points, but it's crucial to combine its signals with other technical and fundamental analysis for comprehensive market analysis and decision-making.

How to Calculate Relative Strength Index?

Relative Strength Index calculator uses Relative Strength Index = 100-(100/(1+(Average Gain during Up Period/Average Loss during Down Period))) to calculate the Relative Strength Index, The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements, indicating overbought or oversold conditions of a security. Relative Strength Index is denoted by RSI symbol.

How to calculate Relative Strength Index using this online calculator? To use this online calculator for Relative Strength Index, enter Average Gain during Up Period (AG) & Average Loss during Down Period (AL) and hit the calculate button. Here is how the Relative Strength Index calculation can be explained with given input values -> 75 = 100-(100/(1+(60/20))).

FAQ

What is Relative Strength Index?
The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements, indicating overbought or oversold conditions of a security and is represented as RSI = 100-(100/(1+(AG/AL))) or Relative Strength Index = 100-(100/(1+(Average Gain during Up Period/Average Loss during Down Period))). Average Gain during Up Period is the average of price increases in a financial instrument over a specified period & Average Loss during Down Period is the average of price decreases in a financial instrument over a specified period.
How to calculate Relative Strength Index?
The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements, indicating overbought or oversold conditions of a security is calculated using Relative Strength Index = 100-(100/(1+(Average Gain during Up Period/Average Loss during Down Period))). To calculate Relative Strength Index, you need Average Gain during Up Period (AG) & Average Loss during Down Period (AL). With our tool, you need to enter the respective value for Average Gain during Up Period & Average Loss during Down Period and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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