Relative Strength Index Indicators creations in Power BI with R script data transformation
RSI or Relative Strength Index developed by J. Welles Wilder Jr. in 1978 is a popular tool used in technical analysis to gauge momentum and identify potential overbought or oversold conditions in a stock's price movement. It is a “momentum indicator” that averages price gains and losses during a specific trading period, It helps determine whether a stock is more likely to continue its current trend or change direction. It considers daily stock gains and losses, providing a value between 0 and 100, with the equilibrium level at 50. The Interpretation of RSI Levels: - Overbought (RSI > 70): Indicates that the stock is overbought, and the upward trend may reverse soon. Selling could be prudent. - Oversold (RSI < 30): Suggests that the stock is oversold, and the downward trend may reverse. Buying opportunities may arise. There are different types of RSI based on its moving average calculations. Here I summarize four typic types of RSI in shortlist as following: ...
