Relative Strength Index

The Relative Strength Index (RSI) is an stochiastic oscillator that moves up and down in response to changes in market rates.

It has garnered great respect among traders as one of the most accurate indicators for evaluating current market trend strength.

Here is how it works. A reading of 30 or under is considered "oversold" and identifies a potential rate increase. A reading of 70 or higher is considered "overbought" and identifies a potential rate decrease.

The Best Forex Brokers + Trading Platforms

Rating Bonus Description Minimum Deposit Regulation Visit
5
Verification Bonus
$50
+40% Deposit Bonus
  • Generous Cashback Rewards for every trade
  • Leverage the wisdom of the crowds to inform your positions
  • Fast, simple signup

$100

CySec

Visit Broker
Review
4.5
Up to
15%
Deposit Bonus
  • The leading Social Trading platform with 4.5m traders
  • Follow other traders or be a leader and earn
  • Personal service and VIP perks

$200

NFA, +

Visit Broker
Review
4.5
  • Choice of four professional trading platforms
  • Trusted & Secure: FCA authorised and regulated
  • Choice of Forex, CFDs, Spread Betting and Binary Options

€100

FCA

Visit Broker
Review
4.5
Spread Betting
50%
1st month commission bonus
  • Low cost trading with tight, fixed spreads
  • Loyalty rewards: Earn cashback as you trade
  • Choose Forex, CFDs or spread betting

$0

FCA

Visit Broker
Review
4.5
Welcome Bonus
$25
  • Award winning social trading platform
  • Follow other traders and copy their trades to profit
  • Access over 100 instruments

$100

CySec

Visit Broker
Review
4.5
No deposit
£20
+ Up to £6000 on deposits
  • No commissions and low spreads
  • Advanced trading tools
  • Minimal account fees

€100

FCA, +

Visit Broker
Review
4


  • Social Trading, Spread Betting and CFDs
  • Great statistics on traders to follow
  • Authorised by the Financial Conduct Authority (FCA)

$100

FCA

Visit Broker
Review
3.5
Sign Up
£25
No Deposit Bonus
  • Tight spreads without commissions
  • Advanced charting tools

$100

CySec +

Visit Broker
Review
3.5
Up to
50%
Deposit Bonus
  • Trusted, regulated broker with 10 yrs experience
  • Multi award winning company
  • Segregated accounts with leading banks

$100

+

Visit Broker
Review
3.5
No Deposit Up To
$100
+55% Deposit Bonus
  • 'Asia's top broker'
  • Wide choice of leverage options

$1

RAFMM +

Visit Broker
Review
3
No Deposit
£25
+Deposit Bonus
  • Free forex signals + market research
  • Online education and webinars
  • Fee free withdrawals and deposits

$5

CySEC +

Visit Broker
Review
3
Cashback Up To
$5
Rebate Per Lot
  • Loyalty cashback on every trade
  • Tight spreads from 0.1 pips
  • Free deposits & fast withdrawals

$1

CySEC +

Visit Broker
Review

The platform will calculate the RSI for you, but it is good to understand how it works, because there are different ways to calibrate it.

The basic number of trading periods that the RSI is set for is 14 – this was the original value that the inventor set for it. This can be changed, and some traders have found different values useful.

However, it is wise to start with the original value and to observe its operation before experimenting.

The first components to be calculated are the total average gains and the total average losses. This information is necessary to arrive at the relative strength (RS) value for the currency pair.

Average gains are calculated by adding up all the gains for the past fourteen reporting periods and dividing by 14; average losses are calculated in the same manner with the total of all losses for the previous fourteen reporting periods summed and divided by 14.

The Relative Strength is then converted to an index value and plotted on a scale from 1 to 100.

Using the RSI in trading is much easier than calculating it. When the “overbought” or “oversold” indication appears, watch for the trend to move in the opposite direction.

But, if a currency pair has remained overbought or oversold for a very long time, and no movement takes place, it’s often the case that a further move in the same direction (higher or lower) will occur.

إنجليزية

Featured Brokers

 

تحذير المخاطر

 

رأس المال الخاص بك هو في خطر.التداول في العملات الأجنبية والعقود مقابل الفروقات هي بالمضاربة وينطوي على مخاطر كبيرة للخسارة. وليس المقصود من المعلومات الواردة في هذه النشرة عرضا أو دعوة لشراء أو بيع أي أداة مالية. يتم توفير هذا الموقع لأغراض إعلامية فقط، وبأي حال من الأحوال تشكل المشورة المالية. ولا يشكل الإدراج تضمن توصية أو تأييد.

حول ForexTrading.Company

تأسست ForexTrading.Company لتوفير التجار العالمي مصدر عميق والثاقبة من المعلومات حول تداول العملات الأجنبية والاستراتيجيات والمؤشرات الرئيسية. مع أدلة للجميع من التجار المبتدئين في البحرين إلى الاستراتيجيين متقدمة في مراكش نحن نريد من المجتمع التجاري العالمي للاستفادة من مراجعاتنا وسيط في العمق، وميزات، والتعليق. نحن قائمة أعلى الوسطاء للوائح وأذن في العالم مناسبة لجمهور عالمي. ونحن نهدف إلى فكر عالميا، واعمل المحلية مع موقعنا، بحيث سواء كنت في دولة الإمارات العربية المتحدة ومصر والسعودية يمكن أن تكسب من المحتوى على أكبر سوق في العالم.
About Us & Contact