What is RSI? How to identify the buying zone?

[karthik Balasubramanian]

RSI is Relative Strength Index which shows the stock or index`s trading strength.It provides oversold and overbought levels.It works in non trending market.It measured by 2 scales 70 and 30.Buying zone is the level at which price goes below 30 mark scale and raises above 30.

[Halima.S]

RSI or relative Strength index is an indicator which attempt to determine the over bought and over sold scenarios. in a chart, the rsi ranges from 0 – 100 where 0 is the lowest point of the chart and 100 the highest. when the RSI approaches 70 mark, it is a overbought scenario means the stock is over valued and it is a good candidate for a pull back.

When it approaches a 30 mark it is over sold and likely to become under valued. when the stock rebounces back and start crossing the 30 mark, it is the time to buy.

[Fathima Shafi]

RSI is Relative Strength index is a technical indicator used in technical analysis. It is called a momentum oscillator which measures the velocity and magnitude of price movements. Momentum is rate of rise or fall in price.

RSI is used on a 14day timeframe and measured on a scale of 0 to 100 with high and low marked at 70 and 30. RSI is considered over brought when above 70 and over sold when below 30.

 

[lk]

Rsi is nothing but a relative strength index used for identifying the trend,i.e over brought or over sold

[kadhirvelu]

RSI is an indicator based on relative strength index . When converted on a scale of measurement up to 100 , Level 30 and level 70 acts as the bench mark .If price falls below 30 and crosses 30 again its the buying zone .

[Author]

Posts