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Relative strength index(RSI) is a momentum indicator that compares the magnitude of recent gains and losses over a specified time period to measure speed and change
of prices movements.
It is primarily used to attempt to identify overbought or oversold conditions in the trading.
When price goes below 30 mark then it is oversold and price will begin to increase thus long position can be created.
RSI is a momentum oscillator indicator which means it tracks the recent rate of rise or fall in the stock price movement based on the recent close prices.It is calculated using the following formula.
RSI=100-100(1+RS) where RS=relative strength.
RSI crosses down 70 mark,it is overbought and it crosses upside 30 marks,it is oversold.
RSI stands for Relative Strength Indicator. It is generally preferred for a non trending zone. It measures the speed and change of price movement. RSI values range from 0 to 100. Traditionally there are two marks 30 and 70. when price goes above 70 mark then it is overbought and price will begin to fall. when price goes 30 mark then it is oversold and price will begin to increase.
RSI is relative strength index . It works effectively in non-trending period .There are two lines 70 mark and 30 mark.
When the price goes above the 70 mark then it is overbought then the price may fall.
when the price goes below the 30 mark then it is oversold then the price may go up.
relative strength index works exceptionally well when price moving side wise .
if price moves down the line of 30 then it consider as over sold now price may move up so we can make long position when price goes up to 30 again
if price goes of the mark of 70 then it is considered as overbought now we can make short position when price returns to 70
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