Forex Academy | ForexGen

Relative Strength Index (RSI)

Relative Strength Index, or RSI mean
A technical indicator used to compare the magnitude of recent gains to recent losses to determine overbought and oversold conditions in the market. . It can be calculated using the this formula:

Rsi=100
100- 1+rs

readings below 20 refer to oversold, while readings over 80 indicate overbought. the RSI ranges from 0 to 100

Using RSI
Relative Strength Index is used as the stochastics, you can see From the chart RSI dropped below 20, it will be an oversold market., the price back up After the drop

The RSI is best used as a valuable complement to other stock-picking tools. Relative Strength Index, or RSI, is like the stochastics in that it means overbought and oversold conditions in the market. It is scaled from 0 to 100. readings, while readings over 80 indicate overbought, below 20 indicate oversold


USING RSI
RSI can be used like stochastics. From the chart ,you can see that when RSI dropped below 20, it is an oversold market. After the drop, the price shot back up.

RSI is a famous tool because it can be used to indicate the trend formations. When you find a trend is forming, you can take a look at the RSI and look at if it is up or under 50. If you are looking at a possible uptrend, you should be sure to make the RSI up 50.and when f you are looking at a possible downtrend, you can make sure the RSI is under 50.

We can see in the chart that a possible uptrend was forming. To avoid the fakeouts, we should wait for the RSI to cross above 50 to confirm the trend., It will be a good indication that an uptrend has formed, When the rsi passes up 50

We have many types of indicators, let's see how we can put all of what you just learned together...

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

Leverage

-A credit shoulder; a parity between extra and own means.

-The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

-The amount of debt used to finance a firm's assets. A firm with significantly more debt than equity is considered to be highly leveraged.

Margin Call

-A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the customer.

-A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin. This is sometimes called a "fed call" or "maintenance call".

-You would receive a margin call from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point. You would be forced either to deposit more money in the account or to sell off some of your assets.

MultiTerminal Platform Released

ForexGen.com has released its new MultiTerminal Platform. The new platform is designed to manage multiple accounts to be used by IBs and Money Managers. For more information, please contact us. MultiTerminal is intended for simultaneous management of multiple accounts, for which is mostly helpful for those who manage investors' accounts and for traders working with many accounts simultaneously. ForexGen now has a trading new client called MultiTerminal. The MultiTerminal is intended for simultaneous management of multiple accounts, for which is mostly helpful for those whom manage investors' accounts and for traders working with many accounts simultaneously. MetaTrader 4 MultiTerminal allows working with any amounts of accounts, receiving quotes for any symbols, placing all types of orders, and viewing history for all accounts. Moreover, within this application the financial news can be delivered in the real-time mode.