The Relative Strength Index, RSI, is a very popular trading indicator used in technical analysis. Based on the closing prices, it measure the strength and weakness of a given security or asset.
The Relative Strength Index was first published in the "New Concepts in Technical Trading Systems" book, by J. Welles Wilder.
The Relative Strength Index formula in QuantShare is "RSI".
There are two variations; the first one has one argument, which is the lookback period.
The second one has two arguments. The first argument allows you to specify a custom time-series (In the first variation the close price is used), while the second argument is used to specify the lookback period. The custom time-series allows you to perform the calculation of the Relative Strength Index on a time-series other than the close price.
Example: RSI(close, 14)
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
