Technical indicators are tools developed by practitioners to confirm the analysis. As the name says, these are only indicators and it is not advisable to arrive any conclusions using these.
Recently Active Members
Bullish View
Bearish View
-
Bearish-GAP-SHORT-BICON-25-10-2019 October 25, 2019
-
FEDERAL BANK – BEARISH ENGULFING October 17, 2019
-
Cummins India – Bearish Engulfing – 24Sep19 September 25, 2019
-
Day29-Tata Motors DVR – Bearish Piercing – 12Sep19 September 12, 2019
-
Day27-Bearish-Engulfing pattern-Tech Mahindtra-09Sep19 September 10, 2019
Hi,
Click the below link for more information about RSI
https://www.youtube.com/watch?v=51yirYtyIDU
The RSI is well known as a momentum oscillator that measures the movements of the stock over a time period. The RSI is displayed as line graph that oscillates within a scale of 0 and 100. The major thing to watch out for are 30 and 70 reading in the scale which is widely known as the overbought or oversold level. The default parameter setting for the RSI is 14, that means it tracks the last 14 periods on a chart.
Overbought and Oversold
One of the best ways to use the RSI is by determining whether the stock is overbought or oversold. This method is an easy way to identify buying and selling opportunities in non-trending markets. However, understanding the logic of overbought/oversold can help you better to master this technique.
Bullish Signal
When the RSI falls below 30 it simply indicates the weakness of the stock but do not indicate an oversold scenario. When the stock rises back above the 30 level after a plunge then the stock is considered to be oversold and might be due for the bullish rally.
Bearish Signal
When the RSI rises above 70 it simply indicates the strength of the stock but do not indicate an overbought scenario. When the stock fell below the 70 level after a rise then the stock is considered to be overbought and might be due for the bearish rally.