RSI

The Relative Strength Index (RSI) was first introduced by J. Welles Wilder in 1978. Step-by-step instructions on calculating and interpreting the RSI are provided in his book, New Concepts in Technical Trading Systems.

When Wilder introduced the RSI, he recommended using a 14-day RSI. Since then, the 9-day and 25-day RSIs have also gained popularity. Because you can vary the number of time periods in the RSI calculation, suggest, that you experiment to find the period that works best for you. (The fewer days used to calculate the RSI, the more volatile the indicator.)

The RSI is a price-following oscillator that ranges between 0 and 100. A popular method of analyzing the RSI is to look for a divergence in which the security is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the RSI then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal.

Syntax:

RSI
RSI()
RSI(“Period”)
RSI(“OutPutStartCell”, ”Period”)

Inputs:

'Close' column values

Parameters:

• Period (default=14)
• OutPutStartCell (default=the next blank column in the worksheet)

Examples:

RSI
RSI()
RSI(“14”)
RSI(14)
RSI(10)
RSI("G2","14")
RSI("G2",14)
RSI(G2,”14”)
RSI(G2,14)