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Random article: Relative Strength Index
Wilder recommended application of RSI measured for 14 days, but also periods for 9 and 25 days are often mentioned. This index is calculated based on relation of average value of positive growth of close price of bar (in relation to close price of previous bar) to total amount of price increment. At the period of 14 days the index expresses an average value of all positive increments in price, then – it shows an average value of all negative increments. Essentially, RSI is exactly the relation between average value of positive growth of close price to the sum of average values of positive and negative increments. RSI fluctuates within the range from 0 to 100, because average value of the index is multiplied to 100. The shorter applied period for this indicator is, the more sensitive towards price fluctuations it gets.
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Popular article: The Pareto principle in trading
According to official sources, the Pareto Principle was named after the economist and sociologist Vilfredo Pareto, who was born in Paris in 1848, but was Italian by nationality. From 1906, he began to notice certain economic patterns. For example, he noted that 80% of the land in Italy belonged to 20% of the population. Then, he formulated the principle, noting that 20% of the pods in his garden contained 80% of the peas. These and other regularities led to the fact that Vilfredo Pareto developed the “80/20 Rule”, which in general form looked as follows: 80% of the effects come from 20% of the causes.
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Simple Moving Average. SMA Forex
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