Relative Strength Index (RSI) is a popular momentum oscillator developed by J. Welles Wilder. The Relative Strength Index compares upward movements in closing price to downward movements over a selected period. The RSI ranges between 0 and 100. The formula of the RSI is:
RSI[n] = 100 - (100 / (1 + U[n] / D[n]))
where:
U[n] - average value of the upward price change for the given period
D[n] - average value of the downward price change for the given period
Relative Strength Index is smoother than the Momentum or Rate of Change oscillators and is not as susceptible to distortion from unusually high or low prices at the start of the window.