Definitions
In plain terms
It compares recent upward close changes with total directional movement under a declared smoothing period.
Technical
The contract freezes close basis, change calculation, gain/loss split, arithmetic seed, Wilder recurrence, first-ready index, flat-state outputs, missing bars, and precision.
Scope
RSI is not relative strength against another security and threshold labels are not automatic trading orders.
Examples
- A governed lesson calculates or identifies Relative Strength Index only after its inputs, window, state, scale, and edge cases are declared.
Common misconceptions
- RSI is not relative strength against another security and threshold labels are not automatic trading orders.
Concept relationships
Prerequisites
Required by
- Stochastic RSI
- RSI Window Minimum
- RSI Window Maximum
- Connors RSI
- Connors Price RSI Component
- Connors Streak RSI Component
- Money Flow Index
- MFI Typical Price
- Raw Money Flow
- Positive Money Flow
- Negative Money Flow
- MFI Money-Flow Ratio
- MFI Bounded Transform
- MFI Typical-Price Direction
- MFI Zero-Flow Neutral State
- MFI Warm-Up Window
Where this concept is used
Evidence and governance
- Relative Strength Index TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition
Limits: Seed, flat-series behavior, unstable periods, and platform compatibility must be frozen before claiming parity.
- New Concepts in Technical Trading Systems J. Welles Wilder Jr. · first party methodology
Supports: historical attribution
Limits: The bibliographic page alone is not an executable specification; equality, seeds, and state transitions require pinned rules.
- Reviewed by
- fintech-builder-batch-008
- Last reviewed
- 2026-07-29
- Next review
- 2027-07-29
- Record status
- published