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usasmokingsale
Age: 2023
Total Posts: 196
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What's Inside Relative Strength
When stated in a mathematical sense, RSI seems more difficult than it actually is to both use and understand. To evaluate the relative strength by hand, the trader must know the formula for
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doing so. The RSI is simply 100 minus the quotient of 100 divided by 1 plus the relative strength. Relative strength is equal to the average gain divided by the average loss. The average loss should be stated in a positive number to make this work.
After looking at the math, it's no wonder that professional traders use computers to decipher the RSI. Short, quick trading, such as scalping or day trading, would
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never allow the time needed to make these calculations on each bar.
Understanding RSI and how it works though is very important; it is one of the most popular oscillators and even one of the most profitable indicators, if used correctly. Many professional traders use the RSI in the form of convergence or divergence, momentum trading, or to show trends and produce consistent profits.
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Posted 17 Apr 2019
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