How To Calculate RSI In Excel

Introduction

Understanding the Relative Strength Index (RSI) is crucial for traders analyzing market momentum. Calculating RSI in Excel involves a series of steps, including data organization and formula application.

This guide walks through the traditional Excel process, but you'll discover how Sourcetable's AI-powered spreadsheet platform lets you calculate RSI and perform any analysis simply by chatting with an AI assistant. Sign up for Sourcetable to analyze your data through natural conversation instead of complex formulas.

Calculate RSI in Excel

To calculate the Relative Strength Index (RSI) in Excel, follow a systematic process to determine the average gains and losses over a 14-day period. The RSI formula, RSI = 100 – 100 / (1 + RS), where RS is the Relative Strength, forms the core of the calculation.

Step 1: Calculate Daily Price Changes

Start by listing the daily closing prices. Then, compute the daily price changes. Subtract the previous day's price from the current day's price to find the gain or loss for each day.

Step 2: Separate Gains and Losses

Separate the gains from the losses. Record positive values for gains and use zero for days with losses. Conversely, record the absolute value of losses and use zero for days with gains.

Step 3: Compute Averages

Calculate the average of the up moves and down moves over the last 14 days. Sum the gains and divide by 14 for the average gain. Similarly, sum the losses and divide by 14 for the average loss.

Step 4: Calculate Relative Strength (RS)

Divide the average gain by the average loss to get the RS value. This represents the momentum of the price movements.

Step 5: Compute RSI

Apply the RSI formula: RSI = 100 – 100 / (1 + RS). Convert the RS into the RSI value to gauge the momentum as an index between 0 and 100.

Step 6: Analyze RSI

Interpret the RSI value to make trading decisions. An RSI above 70 may indicate an overbought condition, while an RSI below 30 may suggest an oversold condition.

Excel vs Sourcetable: Modern Spreadsheet Solutions

Excel has long been the standard for spreadsheet work, but Sourcetable represents the next evolution in data analysis. As an AI-powered spreadsheet, Sourcetable transforms complex data tasks into simple conversations, eliminating the need to learn formulas or features. Whether you're working with small datasets or connecting to large databases, Sourcetable's AI chatbot helps you analyze, visualize, and understand your data through natural language. Try Sourcetable at app.sourcetable.com to answer any spreadsheet question instantly.

Traditional vs AI-Powered Approach

Excel requires manual formula input and feature navigation, while Sourcetable lets you simply tell its AI chatbot what you want to accomplish. This conversational approach makes data analysis accessible to everyone, regardless of technical expertise.

Data Processing Capabilities

While Excel has size limitations and can slow down with large datasets, Sourcetable handles files of any size and connects directly to databases. Users can upload CSV, XLSX files or integrate their database for seamless analysis.

Analysis and Visualization

Instead of manually creating charts and running analyses in Excel, Sourcetable's AI instantly generates visualizations and performs complex analyses based on simple text prompts. Users can create stunning charts and derive insights through natural conversation.

Conclusion

While calculating RSI in Excel requires multiple steps and formulas, modern tools streamline this process.

Sourcetable simplifies technical analysis by letting you build spreadsheets and perform calculations through AI-powered chat interactions.

Start analyzing relative strength index more efficiently with Sourcetable today.