Plus500

Plus500

To understand the behavior of RSI indicator in greater depth, is to look at the theoretical aspects of formation of waves Elliott.

Often, the study was postponed to a schedule, by adjusting the parameters, while not understanding how there are some trading signals. Advanced traders can go further and deeper into the mathematical formula tool. But the fundamental behavior of the indicator is not understood well enough.

This article will help you understand the RSI indicator is better thanks to the original approach.

The basic concept of Elliott wave theory is that market action is accompanied by reaction, and there are 5 waves of the main trend, followed by a 3 wave correction.

Since this model has been repeatedly observed in the markets, there will be a theoretical schedule, based on these principles, to be able to analyze the relative strength index, without interference from the market