Rsi

R

RobtF

From Investopedia: RS = 100 - 100/ Average of x days' up closes / Average of x days' down closes

I'm math challenged, does "Average" refer to closing price or price change and what if, for a 3 day RSI say, all closes were either up or down? If no down closes how can divisor be zero and work?
Thanks anyone.
 
RSI = 100 * UpAvg / (UpAvg + DnAvg)

Where UpAvg is the average positive change over the period and where DnAvg is the average negative change over the period.

So if you have RSI(5), and your closes are:

10,11,13,12,11.50

UpAvg = ([-10+11] + [-11+13])/5
DnAvg = ([13-12] + [12-11.50])/5

In this case, your RSI would be:
RSI = 100 * 0.6 / (0.6 + 0.3) = 66.67
 
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