Discuss the concept of Relative Strength Index.

Relative Strength Index: It is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of the security. RSI is displayed as an oscillator (a line graph) on a scale of 0 to 100. It was developed by J. Welles Wilder Junior and was introduced in the seminal 1978 book titled New Concepts in Technical Trading System. RSI can do more than just pointing to over bought and over sold securities. It can also indicate securities that may be primed for a trend reversal or corrective pull back price. It can even signal when to buy and when to sell. Traditionally, an RSI reading of 70 and above indicates an overbought situation. A reading of 30 or below indicates an oversold situation. RSI, used in conjunction with other technical indicators, can help traders make better-informed trading decisions. RSI uses a two-part calculation, which are as follows: RSI = 100 - (100 / (1 + Relative Strength)) Relative Strength = Average Gain Per Day / Average Loss Per Day