Relative Strength Indicator

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The Relative Strength Indicator function is based on the indicator developed by J. Welles Wilder. It compares the average of up closes against the average of down closes over a specified number of time periods. Resulting values range from 0 to 100. Applications of RSI include identifying overbought or oversold situations. For example, if the RSI line stalls at a level above 70, this may indicate the stock is overbought. Or, if the RSI line drops to a level below 30, this may indicate the stock is oversold and becoming undervalued.

1. Syntax

RELSTRENGTH(d0,s0,Alignment)

2. Input

The Relative Strength Indicator function requires the following input series:

  • d0 - Input data values - The set of data values for which the Relative Strength Indicator is calculated, usually the daily close price of a stock

3. Parameters

The Relative Strength Indicator function has the following parameter:

  • s0 - Period - The number of time periods to use in the calculation.
  • Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.

4. Output

The Relative Strength Indicator function generates the following output:

  • Relative Strength Indicator - The Relative Strength Indicator result set, which consists of values ranging between 0 and 100.

5. See also

Dundas Data Visualization, Inc.
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