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Microcap & Penny Stocks : MegaWorld Inc. (MEGW) -- Ignore unavailable to you. Want to Upgrade?

To: Alex Sharp who wrote (921)	1/12/1999 2:05:00 PM
From: Vegas	Read Replies (1) \| Respond to of 1058

Relative Strength Index (RSI) is a momentum indicator which measures an equity's price relative to itself and its past performance. The RSI indicates a security's internal strength. RSI quantifies price momentum. It depends solely on the changes in closing prices. RSI is less affected by sharp rises or drops in a security's price performance. It gives a better velocity reading than other indicators. RSI equals the average of the closes of the up bars divided by the average of the closes of the down bars. The time frame specified determines the volatility of the indicator. For instance, a 9 day time period under study will be more volatile than a 21 day time span. The RSI ranges between 0 and 100. RSI is said to indicate an "overbought" condition when it is above 80 and an "oversold" condition when it is below 20. However, the buy and sell level varies depending on the amount of bars used in the calculation. A shorter span of bars will result in a more volatile indicator which reaches further extremes. A longer amount of bars used in the calculation results in a less volatile reading which reaches extremes far less often. JF