Application of RSX indicator in volatile markets

Abstract

Purpose: the article is devoted to the consideration of relative strength indicators based on the RSI and RSX indicator for developed and emerging markets. Discussion: the RSI indicator creates many false signals when it is used for volatility markets, the RSX indicator is offered as a more adapted tool as an alternative. Results: an overview of the relative strength indicators in general (RSI) and the RSX indicator in particular is given. There are described differences in approaches. The practical part is considered - the use of the RSI indicator in volatility markets. There were identified weaknesses in the use of these indicators. The advantages of the RSI indicator are «smoothed» behavior in the market, while the RSI indicator is characterized by intense behavior.