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Relative strength index
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===Uptrends and downtrends=== {{Unreferenced section|date=June 2014}} In addition to [[J. Welles Wilder, Jr.|Wilder]]'s original theories of RSI interpretation, Andrew Cardwell has developed several new interpretations of RSI to help determine and confirm trend. First, Cardwell noticed that uptrends generally traded between RSI 40 and 80, while downtrends usually traded between RSI 60 and 20. Cardwell observed when securities change from uptrend to downtrend and vice versa, the RSI will undergo a "range shift." [[Image:rsi-divergence.jpg|thumb|right|400px|alt=RSI Indicator Divergence|Example of RSI Indicator Divergence]] Next, Cardwell noted that bearish divergence: 1) only occurs in uptrends, and 2) mostly only leads to a brief correction instead of a reversal in trend. Therefore, bearish divergence is a sign confirming an uptrend. Similarly, bullish divergence is a sign confirming a downtrend.
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