Question
Choose the statement which you think that best describes the Relative Strength Index (RSI). Select one: a. RSI was invented by J.W. Wilder and was
Choose the statement which you think that best describes the Relative Strength Index (RSI).
Select one:
a.
RSI was invented by J.W. Wilder and was originally applied in commodities, but it can also be used for any asset type. It is mainly a technical oscillator which can indicate market conditions. It takes values between 0 and 100. Above 70, we consider the market to be overbought and therefore we open a short position as we expect the prices to start falling. Below 30, we consider the market to be oversold and therefore we open a long position as we expect the prices to start increasing
b.
RSI was invented by J.W. Wilder and was originally applied in commodities. It is mainly an oscillator which can indicate market saturation conditions. Above a certain level (Lu), we consider the market to be overbought and therefore we open a short position as we expect the prices to start falling. Below a certain level (Lb), we consider the market to be oversold and therefore we open a long position as we expect the prices to start increasing
c.
RSI was invented by J.W. Wilder and was originally applied in commodities, but it can also be used for any asset type. It is mainly a technical indicator which can indicate market conditions. It takes values between 0 and 100. Above 70, we consider the market to be overbought and therefore we open a short position as we expect the prices to start falling. Below 30, we consider the market to be oversold and therefore we open a long position as we expect the prices to start increasing
d.
(i) True, (ii) True, (iii) False, (iv) False
e.
RSI was invented by J.W. Wilder and was originally applied in commodities. It is mainly a technical indicator which can indicate market saturation conditions. It takes values between 0 and 100. Above 70, we consider the market to be overbought and therefore we open a short position as we expect the prices to start falling. Below 30, we consider the market to be oversold and therefore we open a long position as we expect the prices to start increasing
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