Relative Momentum Index Indicator
The Relative Momentum Index (RMI) is a technical analysis indicator that measures the momentum of price movements and identifies overbought or oversold conditions in the market. It combines aspects of the Relative Strength Index (RSI) and momentum indicators, oscillating between 0 and 100. Typically, an RMI value above 70 suggests an overbought condition, while a value below 30 indicates oversold conditions, aiding traders in making informed buy or sell decisions. The RMI can also highlight potential trend reversals by analyzing the relationship between current and past momentum, making it a valuable tool for technical traders.