The relative strength index is our most important technical analysis indicator used to measure momentum on a scale of 0 to 100. It was introduced by Welles Wilder in 1978. He originally recommended using a 14-period RSI. Although we keep the original settings, we developed a non-traditional interpretation. We consider a stock or an instrument trending in a sustainable way when the RSI reading exceeds 67 or falls below 34.
We use the RSI to define the context of a move or to confirm our Elliott wave interpretation.