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The Relative Strength Index, or RSI, is an oscillating indicator that is designed to measure a stocks momentum, which is both the speed and size of price changes. Many investors use this indicator to help identify whether a stock is overbought or oversold. Using this information could help determine potential entry and exit trading signals. In this video, well discuss how RSI is calculated, how it measures momentum, and how it can potentially help identify trading signals and trend reversals. Lets start by calculating RSI. First, identify a previous time period to use. A time period is generally 14 days but can be shorter or longer. Next, add up the average gains and divide by the average losses during your chosen time period. The calculations solution, or value, is referred to as relative strength. The relative strength value is then plotted on a graph between zero and 100. Plotting a line helps investors measure momentum in relative terms, which means looking at the indicators c
