The Relative Strength Index (RSI) to Monitor GDP Variations. Comparing Regions or Countries from a New Perspective

Abstract

The Relative Strength Index (RSI) is one key oscillator in the technical analysis used basically to trade in equity markets such as FOREX or stock markets. However, most of its potential is unknown. This paper reviews the RSI definition to adapt it to the context of quarterly GDP variations in any region or country, showing a detailed example and several applications. It highlights its uses and provides a new insight to compare economies based on this macroeconomic RSI. The extension to other macroeconomics indicators such as inflation or unemployment rates is proposed as well as further research issues.