RSI (Relative Strength Index) Indicator Excel Template
Originally published: 01/06/2023 13:36
Publication number: ELQ-77887-1
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RSI (Relative Strength Index) Indicator Excel Template

This free template in excel can be used to calculate RSI indicator for any stock you are interested in.

Description
What is RSI (Relative Strength Index) Indicator?
RSI is a momentum-based oscillator created by J. Welles Wilder Jr.


How to calculate RSI(Relative Strength Index)?
Due to the nature of the calculation, we start with a slightly different formula for the first period.
Let’s say we use a 14 day RSI. On Day 14 of our data, we can calculate the first RSI.


Calculations for the first RSI – On Day 14
1. On Day 14, we calculate Avg. Gain of 14 days using a simple average of gain on each of the 14 days. A gain is measured as Closing Price – Closing Price on Previous Day. If there is no gain, it is measured as 0 gain.
2. Similarly, on Day 14, we calculate Avg. Loss of 14 days using a simple average of gain on each of the 14 days. A gain is measured as Closing Price – Closing Price on Previous Day. If there is no gain, it is measured as 0 gain.
3. Relative Strength RS = Avg Gain/Avg Loss
4. Relative Strength RSI = 100 – 100/(1+RS)


Calculations for all subsequent RSIs – from Day 15


On Subsequent days (from Day 15), the calculations for Avg. Gain and Avg. Loss change as below.
1. Avg. Gain is measured as (Prev Day Avg Gain * 13) + Current Day Gain
2. Avg. Loss is measured as (Prev Day Avg Loss * 13) + Current Day Loss
3. Relative Strength RS = Avg Gain/Avg Loss
4. Relative Strength RSI = 100 – 100/(1+RS)


Due to the nature of the calculations, depending on your starting point, the RSI values may differ slightly. For example, if you start with a 5 year historical data for a stock, your RSI may be different from your RSI if you start with 1 year historical data.
RSI is represented as a line on the chart and its values range from 0 to 100. Lower the RSI, the weaker the price momentum. Higher the RSI, the stronger the price momentum.


Trading Signals
According to Wilder, any number above 70 should be considered overbought and any number below 30 should be considered oversold.
An RSI between 30 and 70 was to be considered neutral and an RSI around 50 signified “no trend”.
Some traders believe that Wilder’s overbought/oversold ranges are too wide and choose to alter those ranges. For example, someone might consider any number above 80 as overbought and anything below 20 as oversold. This is entirely at the trader’s discretion.
Source : TradingView.com
The following is an example signal strategy
Buy when the RSI drops below the Minimum threshold (30 by default)
Sell when the RSI exceeds above the Maximum threshold (70 by default)


Just download the template and enter the stock symbol you are interested in to calculate the RSI for that stock.


Requirements: To pull live Stock data from the services you would need either Microsoft 365 Subscription Plans for PC and Web

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