Pro lessonTechnical Indicators · 2/43 min read
Momentum indicators: RSI and MACD
What RSI and MACD measure, how they are calculated with simple numbers, and why overbought does not mean the price must fall.
Momentum means how fast and how strongly the price has been moving in one direction. Two of the best-known momentum indicators are RSI and MACD. Both are built only from past closing prices.
The RSI compares the size of recent gains with the size of recent losses, usually over 14 periods. It is shown as a line between 0 and 100.
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