Skip to main content

Relative Strength Index (RSI)

The Relative Strength Index is an indicator used to determine if a stock or asset is overbought or oversold. The indicator consists of a line that moves between 0 and 100. RSI line is plotted usually by using 14 (standard but adjustable) previous candles worth of average price changes.

When the RSI line crosses into the area below 30 the stock or asset is deemed to be oversold, indicating a possible reversal. The same goes for when the RSI line crosses into the area above 70, the asset or stock is overbought and a possible reversal is going to happen.

image.png

RSI Formula

image.png

Image source: Disnat

For more information (also the source) visit: Investopedia and Disnat

How to Visualize Relative Strength Index

1. Head over to TradingView and go to your desired pair.

2. Click "Indicators" in the top bar.

image.png

3. Select "Relative Strength Index"

image.png

4. Click on the cogwheel to change settings

image.png

5. Tradingview has an extra moving average line that you can disable by clicking the "Style" tab at the top

image.png

6. Turn off "RSI-based MA"

image.png

7. Now you can modify the Relative Strength Index indicator and once you like the settings you can transfer them over to BravoBot.

image.png