This benchmark shows a real-time overview of the technical analysis for the selected timeframe. Summary Gold Spot/USD is based on the most popular technical indicators such as moving averages, oscillators and pivots. We use the above mentioned instruments at GOLD-Signals.net to produce Technical Analysis with a high success rate.
Today we are describing or explaining the Oscillator - RELATIVE STRENGTH INDEX (RSI)
The Relative Strength Index (RSI) stands as a proficient momentum-based oscillator, utilized to assess the velocity and magnitude of directional price shifts. When graphed, RSI offers a visual means to track both current and historical market strength and weakness. This evaluation hinges on closing prices over a specified trading period, creating a reliable measure of price and momentum alterations. Given the widespread use of cash-settled instruments (like stock indexes) and leveraged financial products (including derivatives), RSI has firmly established itself as a dependable price movement indicator.
As previously highlighted, RSI operates as a momentum oscillator within a defined range of values. Specifically, RSI ranges between 0 and 100. A lower RSI value near 0 signifies weaker momentum in price movements, while a value closer to 100 indicates a period of robust momentum.
The 14-day period is a commonly employed timeframe, although traders often experiment with various day counts to tailor RSI to their needs.