The Relative Strength Index Moving Average Indicator is added as a tab on the last available Study pane. It represents the strength of a security as a single line by comparing the magnitude of the average upward price change (average gain) to the magnitude of the average downward price change (average loss). The average gain and average loss are not truly averages; instead of dividing by the number of gaining or losing periods, total gains/losses are divided by the number of time periods you specify.
The Relative Strength Index (RSI) Moving Average ranges from zero to 100. When the average gain is greater than the average loss, the RSI rises because the ratio [(average gain/# periods)/(average loss/# periods)] that is plugged into the calculation is greater than 1. Conversely, when the average loss is greater than the average gain, the RSI declines because the ratio that is plugged into the calculation is less than 1.
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Parameter |
Description |
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L1 |
The color of the line representing the Relative Strength Index Moving Average. |
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Periods |
The number of rolling periods [e.g., Historical (days), Intra-day (minutes, hours, etc.)] considered in the average calculation. The default value is 10. |