RSI (Relative Strength Index) Formula Step-2:

Step 2. Calculation of the relative strength.

RS = SMA(N) of U / SMA(N) of D

The formula means that the values of U and D are smoothed with a Simple Moving Average (SMA) with the N period. One of the sources gives a simplified formula: RS (Relative strength) is the ratio of the average gain to the average loss.

Re: RSI (Relative Strength Index) Formula Step-2:

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Re: RSI (Relative Strength Index) Formula Step-2:

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