The relative strength index is a useful momentum oscillator. It measures the velocity of a directional price movement.
When the price of a commodity moves up or down very rapidly, a change of direction at some point is imminent. The slope of the RSI is directly proportional to the velocity of the move, and the distance traveled up or down is proportional to the magnitude of the move.
The main way this indicator triggers a signal is when there is a divergence between the price of the commodity, and the action of the relative strength indicator, as seen in the chart below. One is making higher highs, and the other isn't.
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