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Relative Index

May 17, 2019 by Investor

Relative Index
It is also known as RSI. It is described as the cost oscillator utilized in the technical analysis for showing changes in the costs. This relative index is regarded as a famous device and can be interpreted easily. The cost following an oscillator is shown as the basis graph ranging from 0 to 100. Till today, the best means to analyze Strength Index if to have a look at the area on graph showing a divergence from the existing trend, seeking a divergence area on which the currency cost aims in creating a high level. This type of divergence can be regarded as a good pointer of the impending cost reversal to the existing trend and when RSI does the oppositeand falls in the down trend that grows below its recent low, the strength index could have been regarded to have finished what is called as “failure swing”

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