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The Relative Strength Index (RSI) is an oscillator which is constructed as the ratio of average upward price changes to the average absolute price change. The price changes are determined by comparing the current close to the previous close and the averaging period is determined by the user. The RSI is typically viewed as a means of either confirming or denying price movements. It can be used to issue buy signals (RSI rising above 20%) or sell signals (RSI falling below 80%).
The RSI takes one input parameter which is the number of days used to construct the up and down price change averages.
