The Relative Strength Index Can Tell You Who’s Driving The Price: Buyers Or Sellers

Jonathan Hobbs

about 1 month ago4:11 mins

The Relative Strength Index Can Tell You Who’s Driving The Price: Buyers Or Sellers

The Relative Strength Index (RSI) is an old-time favorite among technical analysts and traders. As the name suggests, the indicator compares the relative strength of buyers and sellers – and that can tell you which side is driving the overall trend. By adding the RSI to your strategy, you’ll get a better idea of when it might be the right time to buy or sell. Let’s jump in.

What’s the Relative Strength Index?

J. Welles Wilder Jr., an American mechanical engineer and real estate developer, devised the RSI back in the 1970s. He explained the indicator in his 1978 trading book, "New Concepts in Technical Trading Systems”, and in the June 1978 issue of Stocks & Commodities magazine – a must-read for traders back in the day.

Limited introductory offer

Subscribe Now 50% Off

Get full access to daily stories, insights, deep-dives, interviews, podcasts, and more

Have an account? Log in