RSI - Relative Strength Indicator Flashcards
1
Q
How is relative strength calculated
A
RS represents the ratio of average upward movement to downward movement over a specified period of time.
2
Q
What is considered a high relative strength
A
above 70
3
Q
What might a high relative strength indicate
A
The stock is overvalued/overbought
4
Q
What is considered a low relative strength
A
30 and under
5
Q
What might a low relative strength indicated
A
a bounce back (a “rally”)
