Many forex traders think of the Relative Strength Index (RSI) as just a simple chart oscillator that gives momentum readings of overbought/oversold conditions during trading ranges, as well as price-oscillator divergence indications. Actually, the RSI is somewhat more than that. During trending markets, the RSI can also serve as a very useful indicator. For more on the RSI as a forex trend indicator, please click here.
James Chen, CTA, CMT