The strength index is a swing indicator designed by Dr . Alexander Elder to measure the strength of the bulls in each uptrend and the strength of the bears in each downtrend.
Index combines three main market information: the direction of price changes, its magnitude and volume . It is from a new and practical perspective that incorporates trading volume into trading decisions.
We can use the strength index directly, but the effect after smoothing is ideal. The strength index after smoothing by the short-term moving average can assist in judging the entry/exit point. The strength index after the long-term moving average is smoothed,The main changes of long/short power can be displayed.