The Relative Strength Index (RSI) is a popular oscillator developed by
Welles Wilder, Jr (see his book, New Concepts in Technical Trading
Systems). RSI measures the relative changes between higher and lower
closing prices, and provides an indication of overbought and oversold
conditions.
The term "Relative Strength" is slightly misleading and often causes
some confusion. Relative strength generally means a comparison between
two different markets or indices. RSI, on the other hand, looks at the
internal strength of a single market.
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