Page 48 - Module 4 - Trading_Ways_and_Means
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Module 4 - Lesson 7 Popular Analysis Tools
11. Relative Strength Index (RSI)
This tool is usually referred to as RSI and was conceived by J. Welles Wilder Jr in 1978. It is an indicator
of a market being oversold or overbought, or an asset being overvalued or undervalued. In other
words, the price has moved so much in one direction so quickly that a reversal of that trend is
expected. The indicator ranges between 01 and 100 when the indicator is below 30 the market is
considered oversold and when the indicator is above 70 the market is considered over bought.
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