Technical indicator Relative Strength Index (RSI) is a price following oscillator, whose values vary between 0 and 100. Values below 30 indicate an oversold state, and values above 70 indicate an overbought state. The classic interpretation of it is the following: if the oscillator line goes out of the oversold zone, it is a signal for opening a long position. If it goes out of the overbought zone, it is a signal for opening a short position.
The indicator displays entry points on the chart using arrows.
- Period RSI - RSI period;
- Signal level in percents - level the line should cross to generate a signal for opening a position.
Condition for opening a long position (green arrow up): the line crosses the level 'Signal level in percents' upwards.
Condition for opening a short position (red arrow down): the line crosses the level '100-Signal level in percents' from top downwards. For example, if the value of 'Signal level in percents' on default, then this value is equal to 70.