Oscillators RSI indicator is one that is widely used by traders. And was created by a man named James Wilder.
Oscillator RSI can be explained in simple terms is a technical indicator that precedes that moves up and down through the normal line has upper and lower bands which represent overbought (overbought) and oversold (oversold). Ribbon which is over 70 so-called extreme bands above and below 30 are called ribbon ribbon under extreme.
Application of practical and simple for traders is the RSI provides information that when it reaches extreme overbought (overbought), above 70, it means that prices will tend to move back down (down trend). And vice versa when it reaches oversold extreme (oversold), under 30, then diperkiran prices will rebound (upward trend).
Second application is as a bearish signal (lowering trend) or bullish (rising trend). See the picture !
When the line moves from the top and then go down and touch the normal line (centerline crossover), number 50, then this indicates a bearish crossover signal (bearish crossover), which means the price is expected to move down.
- RSI : indicator signals a trend reversal.
- RSI : indicator bearish and bullish signals