Group items tagged

The RSI or Relative Strength Index is the most popular technical indicator created by Welles Wilder. His name is not too fortunate for that can induce to the error, as this relative strength is measured not referred to any other value or index, but that is an internal own measurement.

This strategy works with the strength of a trend, ie when the currency pair or any other financial instrument into a strong trend, either upward or downward. If the couple enters a sideways trend this strategy does not give any input signal or will give deliver a false signal, but for this we have to ADX.

In the last five years is spoken increasingly of the need to change the paradigm of global currency. Economists are increasingly confident about the decline of the U.S. dollar whose main disadvantage is its strength illusory.

They are a set of indicators developed by Welles Wilder that are plotted with three lines ADX, DI+ and DI-. The ADX is calculated from the Directional Movement Index. The Directional Movement Index (DMI) is decomposed into DI+ (Positive Directional Index) and DI- (Negative Directional Index) and is a measure of the amount of movement upward or downward that have the prices.