Relative Strength Index or RSI is a momentum indicator that compares the average price change of the advancing periods with the average change of the declining periods.
The RSI can also be used to identify the overbought/oversold levels in a counter, the RSI value above 70 as ‘overbought zone’ and below 30 as ‘oversold zone’.
A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations. It is a trend-following, or lagging, indicator because it is based on past prices.
If a stock is trading stable and moves below 30 level on RSI indicator and then moves above 30 level with significant volume we can create a long position and similarly we can create a short position when the stock that was traded above 70 level breaks down the 70 level with high volume.
Hi,
Answering to your question 1 :: Ideal spot to buy ,is it re- test spot 30?
Yes, Ideal spot to buy when the RSI goes above 30 mark.
Answering to your question 2 :: Fibonacci projection along with structure, high probable zone,isn’t it?
Yes, projected phases are the high probable zone.