What is RSI? How to identify the buying zone?

[Ranjani Arumugam]

<p style=”text-align: left;”>The RSI is a popular indicator which tells you the strength of the stock.</p>
<p style=”text-align: left;”>It is a measure which tells you how well the stock is performing by compring the strength of the up days by the down days.</p>
<p style=”text-align: left;”>The number is computed which has a range between 0 to 100.</p>
When the prices are above 70 it is considered bullish and if it is below 30 it is considered bearish.
<p style=”text-align: left;”></p>
<p style=”text-align: left;”>You buy when the indicator hits 30 and sell when it hits 70.</p>

[Aravind S]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Relative Strength Index are Scale of Two Horizontal line at 70 and 30.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>RSI>70 – Indicate Strength.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>RSI<30 – Indicate Weakness.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>RSI Cross down to 70- Over Brought.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>RSI Upside 30 – Over sold.</p>

[Aravind S]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>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.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>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’.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>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.</p>

[Denis]

Relative strength index is used to identify the general trend it measures the speed and change of price movement RSI oscillate between 0 to 100.When stock cross below 30 show over sold area, when stock cross above 70 indicates over buying area.

[Vimal Kumar]

RSI stands for Relative strength index.

It generally works best for the non-tending zone. It has two marks – 70 & 30.

If the price goes above 70 and dips below it, then go short.
If the price goes below 30 and progress above it, then go long.

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