The Forex trading RSI is an oscillator that measures the strength of a currency trend, and ranges between 0 and 100. If you're keen to learn forex trading, the RSI is one of the key indicators you should learn, as it enables you to recognize a Forex trading market situation. The relative strength indicator (RSI) is a measure for whether a currency is overbought or oversold.
The RSI is an index of price fluctuations over a certain period, and is seen as a percentage.
RSI=sum of price rises/ sum of all price fluctuations
Forex trading RSI rates consist of:
An RSI should not be used alone, but in addition to other Forex trading technical analysis indicators. The longer the period of time that is used for the RSI, the less fluctuations it is expected to show.
Gary Burton - Forex Analyst