Relative Strength Index Calculation Example
Assume a 14 bar relative strength index and assume the previous Average Up is 0.75 and the previous Average Down is 0.40.
Assume the previous bar’s close is 62.0 and the current bar’s close is 63.0.
The current Average Up:
(0.75 * 13.0 + (63.0 - 62.0)) / 14.0 = 0.7679
The current Average Down
(0.40 * 13.0 + 0.0) / 14.0 = 0.3714
The Relative Strength Index:
100.0 / (0.7679 / 0.3714 + 1.0) = 32.5988