The rsi index is an index created by Wells Wilder to measure the internal relative strength of stocks. It represents a technical index that compares the buying and selling power of stocks in a certain period, judges the strength of stocks, and predicts the direction of short-term and medium-term changes in prices.
Rsi consists of three lines, of which the white line is fast rsi and the purple line is slow rsi. Rsi generally selects 6 days, 12 days and 24 days as reference periods.
The rsi index varies from 0 to 100. Generally, the range where the rsi value changes is between 20 and 80. When the white rapid rsi value reaches above 80, the stock price is overbought. If there is a double top or triple top pattern, the stock price is likely to face downside risk.
When the rsi index falls below 20, it is oversold. If there is a double bottom or triple bottom, the stock price is likely to rebound.
When the white fast rsi suddenly breaks through the purple slow rsi from bottom to top, a golden fork will be formed, and the trend will probably rise.
