Concepts- Technical indicator

Technical indicators help traders view the graphs better. They should not be decision makers they are only decision helpers. Other technical analysis help traders make buying and selling decisions.Relative Strength Index is a technical indicator for the non-trending range of the plots. The RSI plot generally shows if the stock is overbought or oversold. The RSI plot ranges from 0 to 100. If the RSI rises above 70, it means its overbought and due for a correction. If the RSI value goes below 30, it means it is oversold and due for a bounce.This technique uses 5 horizontal lines to indicate the support and resistance zones. Lines at 100% (i.e. high of the chart), 61.8%, 50%, 38.2% and 0%(i.e. low of the chart). Depending on the price volatility the new support and resistance lines are either at or near these lines.