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Relative Strength Index was developed by J.Welles Wilder. Relative strength index measures the speed and change of price movements. Relative strength index ranges between 0 and 100. Relative strength index is based on oversold and overbought as well as divergence. According to Wilder,RSI is considered to be overbought when above 70 and oversold when below 30. RSI has a time default of 14 period. When below 30,it tells the trader that it is time to enter a buy position while when it is above 70,it tells the trader  to enter a sell position. RSI is calculated using the following formulae; RSI= 100 -  100                          1+RS where RS= Average Gain/ Average Loss The average gain and average loss are the basic component of RSI. Relative strength index ranges between 0 to 100.Since it is an oscillator and ranges between 0 to 100,it therefore has an oscillator between 30 to 70.When the RSI is between 30 to 70,the positions opened by the trader will not have any ef

Moving average is a widely used indicator in technical analysis which helps to smooth out price action by filtering out noise from the short term price fluctuation. Moving average is a trend-following or lagging indicator since it is based on past prices There are two commonly used moving average;that is; - Simple Moving Average ( SMA ) - Exponential Moving Average ( EMA ) Simple moving average is the simple average of a security over a defined number of time periods while Exponential moving average gives greater weight to more recent price. Moving average have got two main applications,that is; -To identify the trend direction -To determine support and resistance level To calculate simple moving average and exponential moving average,the following formulaes are being considerred; SMA= A1+A2+A3+.......An                             n where SMA is the simple moving average,A1,A2,A3 the first  ,second and third average while n is the total number of average. EMA today

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