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Relative Strength Index is a price following line that attempts to display the strength of a movement without the associated trend to confuse the issue.
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The RSI indicator can be used in a number of ways. The most popular, as shown above, is as an entry trigger o the 80-20 line or the more popular 70-30 lines. The other method is as a divergence indicator where the Market may make higher highs or lower lows but the RSI does not. Similar to other indicators, the divergence method is best used as a backup to other signals. |
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