Page 60 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

2/9 +11
2/10 +14
2/11 0 0
2/12
2/16 +28
2/17 -18
TOTAL 103 124

1.03 / 14 = .074 = Up average.
1.24 / 14 = .089 = Down average.
RSI= 100 x (.074 /.163) = 45.39

To calculate the next day's RSI, multiply the up average (.074) by 13. Add the change for the day,
if it is up. Divide the total by 14. Do the same for the new down average. Multiply the new down
average (.089) by 13. Add the change for the day, if it is down. Divide total by 14.

Then, proceed with the formula:

RSI = 100 x U / U + D
For example, if T-Bills closed up 25 points the next day, calculate the new RSI as follows:
New Up average. = .074(13) + .25/14 = .087
New Down average. = .089(13) + 0/14 = .083
New RSI = 100 x .087 / .087 + .083
RSI = 51.2

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