What is the relative KAIRI index?
The Kairi relative index is a method of using technical analysis to select investment securities. It is usually used in trading in foreign currencies, it is compiled by first taking over the sliding average, which is the average of the price for a certain period that grows and decreases, as time passes. This gliding average is then measured against the current price, with a deviation between two is represented as a percentage of the gliding diameter. The use of this deviation enables investors after the relative Kairi index that was created in Japan, to decide whether to buy or sell studied securities and when these transactions should be made.
Investors often differ in the way they choose their investment securities. Some investors decide to study basic problems, such as the financial strength of the company issuing shares that can affect the prices of securities. Others are not interested in the basics, instead they focus only on securities prices, namely how previous prices can indicate future performance.These people are those who are likely to choose the relative Kairi index to help make their investment selection.
Like many other technical indicators, the relative Kairi index is effective in reporting momentum, which can determine whether the price trend will continue or steam. First, a sliding average of safety is built. This is done by the average of its prices for a certain period of time. Choosing a longer gliding average time results in a more accurate index, although a shorter diameter can be fine for short -term stains.
As soon as the sliding average is collected, it is deducted from the current security price. This number is then divided by the movable diameter and the resulting amount is multiplied by 100 to form a percentage. The resulting percentage is the relative Kairi index. When index is high and positive, it suggests that the investor should sell. If it is high and negative, the investor should buy.
The Kairi relative index graphs can also display investor's entry points, which are the exact points where the trend is about to start. This is done using the center line, which in this case Kairi will always be zero. The moment the index passes above the central line, it is time for an ascending trend. If the index line moves below the center line from the top, it should mark the beginning of the trend of descending security.