Relative Strength Index RSI in T-SQL
The relative strength index (RSI) is a calculation in TA (Technical Analysis) which measures the strength in the direction of the momentum of a stock. It compares losses to gains in closing prices under a decided time period. The measure varies between 0 and 100. 100 means there are only gains in closing prices, and 0 means there are only losses.
In theory, a stock that is rises above a certain RSI threshold, normally 70, can be considered overbought and may be a selling candidate. That is because a reversal can be expected sooner or later when a stock is overbought. Conversely, a stock that sinks below 30 in RSI can be considered oversold and may be a candidate for buying.
This blog post will show how to calculate Relative Strength Index RSI in T-SQL. It will use a time period of 14 periods. The calculation works on all versions of SQL Server.