Relative Strength Indicator
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.