1 Comment
  1. Naresh 5 years ago

    Hi,
    Fibonacci retracements
    After a significant price move, either up or down, prices will often retrace a significant portion of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci retracement levels. These are the Fibonacci retracements levels (61.8%, 38.2%, and 23.6% ) which a stock can possibly retrace before it resumes the original directional move.

    RSI Indicator
    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.

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