combination of the Relative Strength Index and Candlestick Analysis gives the Intraday Momentum Index, that was developed by Tushar Chande.
The IMI calculation is similar to RSI, but intraday opening and closing prices relationships are used here in order to find out if the day is up or down. An up day means that the close is higher than the open. It is signified by white candlesticks. A down day means that the close is lower than the open and it is signified by black candlesticks.
As well as RSI, the index rise over 70 indicates overbought conditions, that mean lower prices in future. Index values lower than 30 mean a possibility of oversold situation that is followed by higher prices. You should estimate the forex market trendiness using all overbought/oversold indicators before taking any actions on an signals.
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