For installation of the Index of the Relative Force, we will press the button Indicators at a toolbar and will select from the appeared menu Ocillators - relative strength index
After that, there is a window where we can change properties of the exposed indicator. We can select the averaging period, a method, to fix a maximum and a minimum, and also to change visual settings.
In a method we specified the prices to which the indicator is used. These are the prices of closing, opening, maximum, minimum or their different sheaves.
In classical literature, is described the Index of the relative force, how "Next oscillator after the price which fluctuates in the range from 0 to 100
also signals about aspiration of the market to change of a trend in case of big (close to 100%)
or small (close to 0%) values P Si Ai.
The indicator is calculated on the following formula where R S C Y is a middle value of the positive price changes. S D are mean values of the negative price changes. The delta is an average change in price,
Classical advice on use of the indicator looks as follows: When the index of the relative force rises above the upper auxiliary line, strength of bulls is high, but the market is bought up and ready to enter the period of sales.
On the contrary, when R S I falls under the lower auxiliary line, it is possible to make the inference about the big strength of bears, but also it should be noted that the market is resold, and start the purchases.