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RSI full form is Relative Strength Index.It is a technical Non trending indicator.Here price movement will be shown on a scale having 70 and 30 points.
If the price move above 70 zone with high volume then keep Long position,where as if the price reaches the neck line of 30 ,it denotes the sellers are selling in huge manner then we have to make short position.
Again we have to keep in mind that Moving average and RSI both are only additional tool for indication.
relative strength index – there are two ranges in RSI 30 and 70
it is easy to identify in the non trending zone
if the stock goes above 30 zone then it is a buying zone.
RSI (Relative Strength Index) is a technical Non trending indicator. Here price movement will be shown on a scale having 70 and 30 points.
If the price move above 70 zone with high volume then take Long position, where as if the price reaches the neck line of 30, it denotes the sellers are selling in huge manner then we have to take short position.
We have to keep in mind that RSI like Moving Average is only a additional tool for indication and it has to be used in conjunction with Technical analysis for better results.
The full form of RSI is Relative Strength Index
This is a momentum indicator of two horizontal lines indicating 70 at top and 30 at bottom
Price movement above 70 shows OVER BOUGHT srea and price price movement BELOW 30 shows BUYING ZONE area
BUYING AREA when price crosses ABOVE exactly at 30 it in the right point to buy
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