Today we are going to discuss about RSI (Relative Strength Index) indicator. This indicator has been widely used by so many investors out there, whether they are individual investor or company organization. The RSI was firstly build and developed by indicator specialist, J. Welles Wilder. As time passing by, RSI is currently the most use indicator in the world.

How Relative Strength Index calculated is quite unique and different from any other indicator that use out there. The calculation of this indicator began by measuring the point from which the indicator was first draw to the last place where the indicator putted. It is measuring the gain and loss of the current price and will also be measure by using some calculation formula that only the developer knows.

Other stuff that RSI do is by showing its user the important condition of the current price movement. What I mean by this is that it showing condition like oversold overbought of a price, it shows divergence that happen on the chart and it shows some continuation or reversal probability. All these are important key elements that investors need to know and understand.

Based on what I got from fellow traders, especially those who are using RSI is that, according to them, the standard version of Relative Strength Index already a killer. And the value is added when this indicator is combine with others such as MACD, Stochs, or Fibonacci. Investors can actually add some value to their trading arsenal by combining two or more indicators with RSI.

It is all depends on the investors themselves on how to use this indicator the best. Because of that, you need to have a very deep knowledge of how to use indicators in conjunctions to one another, and you can get this knowledge from several ways like being active in a forum or two, by taking online trading lesson from someone competent, or by asking to fellow investors that more professional than you.

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