# Relative Strength Index

From MarketsWiki

The Relative Strength Index or RSI is calculated with the following formula, where RS = Average Gain / Average Loss. 14 periods is generally used to calculate RSI^{[1]} but other periods may used, as long as the period is consistent throughout the calculation. The concept of Relative Strength Index is credited to J. Welles Wilder^{[2]}.

Average Gain = (SUM of the Total Gains for the preceding 14 periods)/ 14

Average Loss (|SUM of the Total Losses for the preceding 14 periods |) / 14

RS=Average Gain / Average Loss

RSI = 100 - ( 100 / 1 + RS ) ^{[2]}

## References

- ↑ Relative Strength Index. Stockcharts.com.
- ↑
^{2.0}^{2.1}Relative Strength Index. Trade2Win.com.