Ruby Technical Analysis

Description

The Relative Strength Index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, “New Concepts in Technical Trading Systems.”

For more information, please visit Investopedia.

Params & Instance Methods

#initialize
@param series [Array] An array of prices, typically closing prices
@param period [Integer] The number of periods to use in the calculation - default is 14

#call
@return [Float] The current RSI value

#valid?
@return [Boolean] Whether or not the object is valid

Example

require 'ruby-technical-analysis'

series = [37.875, 39.5, 38.75, 39.8125, 40, 39.875]
period = 5

relative_strength_index = 
  RubyTechnicalAnalysis::RelativeStrengthIndex.new(
    series: series,
    period: period
  )

p relative_strength_index.valid? # true

p relative_strength_index.call # 76.6667